Bitcoin ETFs' Lack of Approval Triggers Market Downslide, but Hope Lies in Top Five Cryptocurrencies
Summary:
Despite initial optimism around Bitcoin (BTC) exchange-traded funds (ETFs), lack of regulatory approval triggered a decline in Bitcoin's price, with predictions of it dropping as low as $25,000. However, incoming investments to ETFs might potentially counter the downturn. The article provides an analysis of the top five cryptocurrencies, including Bitcoin, that are expected to perform well in the near term.
Despite high expectations for Bitcoin (BTC) exchange-traded funds, their lack of regulatory endorsement didn't spur a positive market response. Instead, traders chose to secure profits, leading to a steep drop to $41,500. Market analysts are now forecasting Bitcoin to potentially dip as low as $25,000. However, price points around $38,000 are expected to entice long-term investors, who will be monitoring Bitcoin halving and increased institutional interest in Bitcoin ETFs in the following weeks.
According to Bloomberg ETF analyst Eric Balchunas, newly debuted ETFs saw an inflow of $1.4 billion, while the Grayscale Bitcoin Trust (GBTC) recorded an outflow of $579 million. Cumulatively, the two trading sessions witnessed net inflows of $819 million across all ETFs. The question arising now is whether these Bitcoin ETF inflows could turn around the downturn in Bitcoin and altcoins. Let's delve into the top 5 cryptocurrencies that could potentially excel in the near future.
Bitcoin's recent performance has been rather unpredictable. As it struggled to maintain a price above $48,000, short-term traders opted to secure profits, precipitating a significant plummet on Jan. 12. A fierce tussle has been ongoing around the ascending triangle pattern's support line, with buyers managing to safeguard the support line, but unable to catalyze significant recovery. This indicates persistent bearish market pressure.
In response to this, the 20-day exponential moving average ($43,933) has begun to decrease, and the relative strength index (RSI) sits just under the midpoint. This implies that the bears might be gearing up for a comeback. Should the price sustain below the triangle, the BTC/USDT pair might drop to $40,000, with a further drop to $37,980 possible. For the buyers to regain control, the price needs to breach $44,700.
Internet Computer's (ICP) price has bounced off the 20-day EMA ($12.11) twice within a week, signifying that the bulls are ardently defending this level. Despite positive signals from the upward-trending moving averages, the negative divergence on the RSI suggests weakening bullish momentum. If the price closed above $14.21, it could pave the way for a retest of the peak at $16.30, with potential for further climb to $18.
Celestia (TIA) has maintained a strong ascent over the past few days, showing that even minor downturns are met with fresh buying. Following a temporary resistance around $20, the buyers would need to prevent the price from dipping under $17.29 to convert this level into a support point. This would enhance the likelihood of breaching the $20 mark and a subsequent rise to $25.
Mantle's (MNT) price surged beyond the ascending channel pattern on Jan. 10 and had a strong climb to $0.85 on Jan. 11 before profit booking at higher levels led to a retraction. Currently, the price has returned to the channel's breakout level, where a come-back by buyers is expected.
Finally, Sei (SEI) has formed a symmetrical triangle pattern, indicating a stalemate between buyers and sellers. Although this pattern typically signals a continuation, it can occasionally signal a reversal. The ascendant 20-day EMA ($0.64) and the RSI in the positive area suggest an advantage to the buyers. If they can drive the price beyond the resistance line, it could signal an upswing of the SEI/USDT pair towards the pattern target of $1.10.
Published At
1/15/2024 2:16:04 AM
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