Bitcoin’s recent sell-off is failing to hit a bottom, eroding traders’ interest in altcoins. Bitcoin remains under pressure, pulling back towards $95,000 with bears reinforcing their positions. Nonetheless, US spot Bitcoin ETFs observed inflows of $52.4 million on January 7, indicating investor confidence despite a more than 5% decline, suggesting expectations of an imminent bull run.
Arthur Hayes, BitMEX co-founder, anticipates that the introduction of up to $612 billion in new liquidity by the first quarter of 2025 could bolster Bitcoin prices. This could counteract any delays in implementing pro-crypto legislation by President-elect Donald Trump’s team.
Ether is also garnering optimism. Dr. Sean Dawson notes that a regulatory-friendly environment and the successful Pectra update could push Ether to $12,000 by year-end.
Bitcoin’s inability to sustain levels above $100,000 might have tempted short-term traders to secure profits, resulting in a pullback below the moving averages. Both moving averages are flattening, and a relative strength index slightly below the midpoint indicates weakening bullish momentum. BTC could slip to $90,000, a strong probable support, and a break below $90,000 to $85,000 could signal a short-term trend reversal. On the contrary, a rebound above moving averages could trigger a rally to surpass $102,725, potentially retesting the all-time high of $108,353.
Ether’s decline below the $3,555 breakout level on January 7 suggests a bull trap on January 3. The failure invalidates the ascending triangle pattern with Ether dropping below the uptrend line, indicating bearish tendencies. Ether could fall to $3,102 and further to $3,000, where buyers might staunchly defend between $3,000 and $2,850. Any recovery would meet resistance at the moving averages, with a climb above the 50-day SMA suggesting a potential rebound to $3,745 and subsequently to $4,094.
XRP buyers failed to push prices over the resistance line, suggesting continuation of its current range within the triangle for a longer period. A drop below the 20-day EMA could drive XRP towards the support line, with a break and close below the triangle signaling a short-term peak, initiating a pullback. Buyers need to raise and maintain above the resistance line for momentum toward $2.73 and $2.91.
Similarly, BNB saw an upside resolution of tight-range trading over $722 on January 6, although the bulls failed to hold gains. A pullback suggests potential support at the 50-day SMA or further down to the solid $635 support. Bulls need to quickly push prices over $745 to aim for a rally towards $794.
Solana’s rebound failed to maintain its position above the 50-day SMA, dipping sharply. Bears are poised to push Solana below its uptrend line toward $175 and $165. If the trend line holds, a rebound above the 20-day EMA could restore buying control.
Dogecoin’s failure to break above $0.40 might have triggered profit-taking. A sharp pullback below moving averages on January 7 indicates a likely range-bound phase between $0.30 and $0.40. Buyers need to lift the price past $0.40 to retest $0.48, while a drop below $0.30 could send Dogecoin toward $0.23.
Cardano rose over the $1.12 resistance on January 7, only to fall back sharply to the 20-day EMA. A break below this level could result in a drop toward $0.80 support, with the potential for a range between $0.80 and $1.18 for some time. Buyers must drive prices over $1.18 to regain control.
Avalanche’s January 6 close above the 50-day SMA was undone by aggressive bear sell-offs on January 7. Bears target a decline toward the strong support at $33.60. A rebound could mean temporary consolidation, while a breach below $33.60 might lead to drops at $30.
Sui’s uptrend correction brings prices to the 20-day EMA. A strong rebound could propel Sui back up, but a failure could see a slide to the 50-day SMA, with further setbacks likely at $3.50 if sellers gain control.
Chainlink’s dip below moving averages is evidence of higher-level selling, possibly pushing Chainlink to the neckline of an H&S pattern at $20, a critical support. Buyers defending this level might prompt consolidation, while a breach could trigger further declines to $16 and $14.
This analysis does not offer investment advice. Readers should conduct research before making investment decisions.
