Bitcoin’s recent decline shows no indication of bottoming out, leading to a diminished interest in altcoins from traders. Bitcoin’s price dropped to near $95,000, suggesting a strengthening bearish hold. Although some bullish sentiment was observed with a $52.4 million inflow into US spot Bitcoin exchange-traded funds on January 7, the price continued to decline.
Arthur Hayes, co-founder of BitMEX, noted that potential new liquidity of up to $612 billion in early 2025 could benefit Bitcoin, despite possible delays in pro-crypto legislation from President-elect Donald Trump’s team. Meanwhile, analysts have turned positive on Ether, anticipating it could reach $12,000 by year-end, supported by a regulatory-friendly atmosphere and the Pectra update.
Bitcoin struggles to maintain a position above $100,000, leading to profit-taking among short-term investors. Should the BTC/USDT pair fall to $90,000, it is expected to find solid support, with a possible downward trend reversal if prices dip below the $85,000 mark. Conversely, if prices rally above $102,725, Bitcoin may revisit its all-time high of $108,353.
Ether also saw a decrease, losing ground below $3,555 on January 7, hinting at a potential bull trap. Sellers pulled the price below an uptrend line, opening the path towards $3,102 or even $3,000. Buyers will likely defend the $3,000 to $2,850 zone, with any recovery facing resistance at moving averages.
XRP couldn’t break above its resistance line, possibly staying within a triangular range. Should prices drop below the 20-day EMA, the XRP/USDT pair could retreat further. The trend will turn to buyers’ favor only if prices push past the resistance line, targeting $2.73 and $2.91, respectively.
BNB’s attempted rally above $722 was short-lived, with prices turning sharply downwards. Minor support at the 50-day SMA ($688) could fail, possibly sending prices to strong support at $635. Bulls must push above $745 for a potential rally towards $794.
Solana’s upward movement was stalled at the 50-day SMA, with subsequent drops suggesting strong bearish activity. If the price drops below the uptrend line, the SOL/USDT pair could fall to $175 or $165. A rebound off the uptrend line could herald a bullish defense, rallying above $223.
Dogecoin saw a decline after failing to breach the $0.40 resistance, suggesting potential range-bound action between $0.30 and $0.40. A break below $0.30 could lead prices to $0.23, while surpassing $0.40 could mean a retest of $0.48.
Cardano’s surge above $1.12 was short-term, with prices retreating to the 20-day EMA. If this support fails, ADA/USDT may drop to $0.80 before potentially oscillating between $0.80 and $1.18 for several days. A breakout above $1.18 could drive prices to $1.33.
Avalanche, after closing above the 50-day SMA, saw a rapid drop below moving averages, indicating aggressive bear activity. If the pair rebounds from the support zone and climbs above the 20-day EMA, consolidation between $33.60 and $45 may occur. Otherwise, a break below $33.60 points to a decline toward $30.
Sui’s correction in its uptrend brought prices to the 20-day EMA, a crucial short-term support. A rebound could lead to a resumption of the uptrend, targeting $5.36, while a drop could see a decline towards the 50-day SMA and beyond to $3.50.
Chainlink fell below moving averages, displaying selling at higher levels. The LINK/USDT pair could reach the H&S pattern neckline at $20, where a rebound signals consolidation. Breaking below this level confirms a bearish setup, potentially leading to additional declines to $16 or $14.
Overall, the current market conditions suggest a cautious trading environment where bearish forces remain strong, although opportunities for rebounds and rallies exist if key resistance levels are broken.
