Bitcoin's Slip Sparks Uncertainty Among Top 10 Cryptocurrencies Amid ETF Concerns
Summary:
On January 3, Bitcoin led a decline in the cryptocurrency market due to anxieties about the potential denial of Bitcoin ETFs. The dip didn't alter the prevailing market trends, as the long-term outlook remains uncertain. Analysts examined the top 10 cryptocurrencies, revealing the support levels in Bitcoin and altcoin markets that could slow the descent. Despite the downturn, Ether, BNB, and others are showing signs of resilience, while XRP, Cardano, and Avalanche signal a possible deeper correction.
A slump in Bitcoin (BTC) spurred a downward trend in cryptocurrency markets on January 3, expressing market anxiety over the potential rejection of Bitcoin exchange-traded funds (ETFs) applications. Analysts have suggested that a report by crypto financial services firm Matrixport, forecasting an ETF rejection, is partly to blame for the unrest. However, there remains a lack of solid evidence from the report supporting this claim. Meanwhile, a Bloomberg ETF analyst maintains that there is a 90% chance of the ETFs receiving approval by January 10.
Although this downturn has dampened short-term bullish outlooks, the long-term market trend is not affected. Investors will be closely observing the regulator's decisions, as positive news on the ETF approvals could trigger a significant market turnaround.
Key support levels in Bitcoin and altcoin markets could help to curb this decline. Here's a closer look at the top 10 cryptocurrencies.
Bitcoin's price broke through a resistance level of $44,700 on January 2, but this was short-lived as the price dropped the following day. However, the dip to the 50-day simple moving average ($40,938) was quickly bought, demonstrating strong support at the $40,000 level. The market seems likely to remain range-bound in the near future, fluctuating between $40,000 and $45,879. A fall below this range may suggest dwindling confidence among bulls and could result in a further slide to the next support level at $37,980. On the other hand, a surge above $45,879 could see the market challenging the $50,000 mark.
Ether attempted to break through the $2,445 resistance barrier on January 2, but was met with strong opposition. Despite sharp losses, the currency found support at $2,100 and appears to be stabilizing above $2,200. Looking ahead, Ether may continue to fluctuate between $2,100 and $2,400. A fall below $2,100 would be required to ignite a deeper correction to $1,900. On the flipside, a rise above $2,445 could potentially spur a rally to $3,000.
BNB attempted a run from the 38.2% Fibonacci retracement level at $309, but strong sell-offs pulled the price close to the 61.8% retracement level at $290. The BNB/USDT pair could climb to the resistance at $338 if the price stays above the 20-day EMA.
Solana faced resistance at $117 on January 2, causing a drop below the 20-day EMA the following day. If the price persists below the EMA, $76 could be the next target. Meanwhile, XRP has formed a descending triangle pattern and may plunge to $0.46 or even $0.41 if the price sustains below $0.57.
In contrast, Cardano saw a short-lived breakout from a symmetrical triangle pattern on January 2. The price may fall to $0.46 if the 50-day SMA gives way under bearish pressure. Alternatively, a rally above $0.64 could suggest a potential break above $0.68.
Avalanche's recovery suffered a setback at $43.44 on January 2, concluding in a bare head-and-shoulders pattern formation. On the other hand, Dogecoin saw its support crumble at the 50-day SMA on January 3, signaling bearish dominance.
Polkadot experienced a critical crash to $6.50 on January 3. However, the price could spike to $8.80 if it crosses the 20-day EMA. Lastly, Polygon broke through the $1 mark on January 1, but this rally was short-lived. It descended to $0.74 on January 3, indicating that we could see it hover between $0.75 and $1 for a while longer.
Published At
1/3/2024 10:40:00 PM
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