Bitcoin ETFs Kick Off as Crypto Market Awaits Potential Long-Term Uptrend
Summary:
US regulators approved Bitcoin (BTC) spot exchange-traded fund applications on January 10, and trading began the following day. Though the approval didn’t cause significant market fluctuations, Bitcoin ETFs quickly piqued trader interest with a combined trading volume of $4.5 billion on day one. Analyses of Bitcoin, Ether, Binance Coin, Solana, Ripple, Cardano, Avalanche, Dogecoin, Polkadot and Polygon display varying degrees of volatility and trader sentiment. Long-term effects of Bitcoin ETFs and the Bitcoin halving event in 2024 could potentially drive prices higher.
As of January 10, U.S. regulators have given a go-ahead to the Bitcoin (BTC) spot exchange-traded fund applications, and a multitude of ETFs began trading on the following day. This significant development did not trigger a massive surge or a harsh sell-off, hinting that the sanction was well-anticipated. Surprisingly, in the absence of any robust bullish momentum, the Bitcoin ETFs managed to attract significant attention from traders. The combined trading volume reached $4.5 billion on the first day itself.
The immediate implication may be a short-term steady pathway for Bitcoin as traders keep an eye on institutional flows into Bitcoin ETFs. Meanwhile, in the longer perspective, Bitcoin ETFs coupled with Bitcoin halving scheduled for April 2024 are likely to create a supply pinch, pushing the prices upwards. To grasp a better understanding of what imminent support levels may drive purchasing in Bitcoin and altcoins, an in-depth analysis becomes necessary.
In recent days, Bitcoin has experienced substantial volatility, suggested by the long tail on January 10's candlestick and the long wick on January 11’s counterpart. This reflects buying at lower levels and selling at higher levels.
As for Ethereum (ETH), it soared above the overhead resistance of $2,400 on January 10, kickstarting the next leg upward. Subsequent targets are set around $2,700, appealing to short-sellers for profit-booking.
Meanwhile, the Binance Coin’s (BNB) retracement grounded to a halt at the 20-day EMA ($300) on January 8, revealing a positive sentiment with traders purchasing on dips.
The Solana (SOL) currency battled between the inclined and declining trend lines for several days, asserting neither a bullish nor a bearish dominance. The situation for Ripple (XRP) was similar, with both moving averages flattening out, and an RSI value slightly below the halfway mark.
Cardano (ADA) outperformed the moving averages on January 10, but the bulls faced challenges in maintaining the momentum and overcoming the resistance at the downtrending line.
For Avalanche (AVAX), the coin turned upward from the 50-day SMA ($34.83) on January 10 and rose above the neckline mark of $38, suggesting a bear trap set by the bulls.
Dogecoin (DOGE) surpassed the 20-day EMA ($0.09) on January 11, but failed to register a close above it, indicating bearish momentum with rally selling activity.
Lastly, Polkadot (DOT) rebounded off the 50-day SMA ($7.09) and exceeded the upper resistance of $7.90 on January 10. The last coin in our list is Polygon (MATIC) that stormed past the moving averages on January 10, signalling an aggressive bull market.
However, this information should not be considered as investment advice or recommendations. Trading moves come with inherent risks, and each investor should execute thorough research before making any decisions.
Published At
1/13/2024 12:15:00 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.