In light of recent market developments, Bitcoin has dropped below a key support level of $90,000, signaling increased pressure from bearish investors. Historical trends indicate that Bitcoin often decreases in value during January of post-halving years, as seen in 2017 and 2021. Expectations remain that bulls will defend the $85,000 mark robustly. Concurrently, the S&P 500 has also faced a downturn, compounded by a stronger US Dollar Index, which is affecting risk assets. Additionally, there is speculation surrounding the Federal Reserve’s future rate cut plans, with a slim 2.7% chance of a 0.25% rate cut in the near term.
Despite short-term volatility, long-term investors continue to accumulate Bitcoin. Michael Saylor, founder and chairman of MicroStrategy, announced the purchase of 2,530 Bitcoin, bringing the firm’s total holdings to 450,000 coins at an average price of $95,972.
Turning to the S&P 500 Index, a recent break below the 5,853 support level has completed a head-and-shoulders pattern. Bulls will attempt to reclaim the breakdown level, while bears aim to push prices toward a lower support of 5,670. A recovery above 5,929 could indicate a potential rally towards resistance in the 6,050 to 6,100 range.
For the US Dollar Index, the sentiment remains positive as the price rebounded from the 20-day EMA, continuing its upward trend. Bulls are targeting higher levels at 111.27 and 113.14, while bears must maintain pressure below 108 to prevent further gains.
Ethereum is following a bearish trajectory after falling below the head-and-shoulders neckline. The $2,850 support level is critical for bulls, while a breach could lead to a decline to $2,400. A comeback above the neckline suggests potential upside for Ether.
XRP has shown bullish momentum by breaking out of a symmetrical triangle pattern, heading towards resistance at $2.60. However, a failure to hold above moving averages could signal a retreat to the triangle support.
BNB faces challenges in surpassing the 20-day EMA, with bears eyeing a drop to critical support at the uptrend line. A rebound could target $745, but failure at the uptrend line might see a fall to $635.
Solana’s breach of its uptrend line indicates continued bearish pressure, with key support at $155. A close above the 20-day EMA is necessary for bulls to reverse the trend.
Dogecoin’s struggle at the 20-day EMA has established $0.30 as a vital support level, with risks of a fall to $0.27. Conversely, a rebound could keep the price between $0.30 and $0.40.
Cardano’s recovery was halted at its 50-day SMA, with sellers eyeing a decline to $0.76. A rise above the 50-day SMA could extend its stay within the current consolidation.
Avalanche has broken below $34.87, pointing to further declines possibly towards $22.35 if the $30.50 support does not hold. Bullish momentum hinges on overcoming resistance at $45.
Investors are advised to proceed with caution as market conditions remain uncertain, with price analyses indicating crucial levels and potential scenarios for each cryptocurrency.