Bitcoin Volatility Surges Amid Speculation about ETF Approval; Altcoins Trend Analysis
Summary:
The volatility of Bitcoin (BTC) has spiked over the past two days due to speculations about the approval of Bitcoin Exchange-Traded Fund (ETF) applications. Some analysts predict that Bitcoin may slump even if one or more ETFs get approved, but expert John Bollinger expects a significant rise. The trend of other cryptocurrencies including Ether (ETH), BNB (BNB), Solana (SOL), Cardano (ADA), Avalanche (AVAX), Dogecoin (DOGE), Polkadot (DOT), and Polygon (MATIC) are also covered. The article emphasises individual research before making any investment or trading decisions.
In the past couple of days, increased fluctuation in Bitcoin’s (BTC) value has been recorded owing to trader predictions on the direction of spot Bitcoin exchange-traded fund (ETF) applications. Several experts have suggested that ETFs have the potential to get approval by January 5th; however, James Seyffart, an ETF analyst from Bloomberg, maintains that an approval is likelier between January 8th and 10th.
Cryptocurrency market observers are of the view that even if one or more Bitcoin ETFs get approval, Bitcoin may face a downward trend. This is traditionally a situation of buying the speculation and selling the news. However, John Bollinger, inventor of the Bollinger Bands volatility indicator, anticipates the opposite reaction - that Bitcoin could rise significantly.
Bitcoin's values experienced some recovery below the ascending triangle pattern of January 3rd, suggesting the steep drop to the 50-day simple moving average ($41,205) may have been a false bearish indicator. Buyers will aim to secure their position by pushing Bitcoin's price over the $44,700 resistance, a move which could signal a rally towards overhead resistance zones between $50,000 and $52,000.
Ether (ETH) made an attempt to rise above the 20-day exponential moving average ($2,269) on January 4th, but the bears were persistent at this time. The likelihood for the foreseeable future is that ETH price actions are set to remain within a specific range.
BNB (BNB) has been in an ascending consolidation phase for the past few days. According to the 20-day EMA ($295) and the RSI in positive territory, the bulls at present have dominant control.
The Solana (SOL) price dropped slightly below the 20-day EMA ($97) on January 3rd but the bears failed to keep it below this point. The immediate level to watch is the 20-day EMA - if it drops below this, selling could increase and SOL could drop to the 50-day SMA ($77).
Buyers attempted to maneuver Cardano (ADA) back into the symmetrical triangle pattern on January 4th, but were met with bearish resistance.
On January 4th, Avalanche (AVAX) was taken above the neckline of the head-and-shoulder pattern by the bulls but they couldn't conquer the barrier that is the 20-day EMA ($39.44).
Dogecoin (DOGE) managed to close above $0.08 on January 3rd, and bulls have been able to keep the price above $0.08 since, although they're struggling to initiate a pronounced relief rally.
Polkadot's (DOT) recovery attempts face counter-resistance at the 20-day EMA ($7.90), signaling that the bears are initiating sell-offs during price surges. A range-bound action is expected in the near future, with DOT moving between $6.50 and $8.80.
Polygon (MATIC) found some support at the 50-day SMA ($0.85) on January 3rd, but the bulls were unable to drive the price beyond the $0.89 resistance on January 4th.
Bear in mind that this article doesn't provide investment advice or recommendations. All financial moves and investment decisions pose a certain level of risk, and it’s recommended that individuals conduct their own research prior to making any decisions.
Published At
1/6/2024 1:47:13 AM
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