Cryptocurrency Market Analysis: Gauging Impact of False ETF Approval Tweet on Bitcoin and Altcoins
Summary:
This article presents an analysis of Bitcoin and various altcoins in the wake of a hacked tweet from the U.S. Securities and Exchange Commission falsely announcing the approval of Bitcoin exchange-traded fund applications. Despite the momentary uproar, the overall market is predicted to remain stable, with any declines viewed as potential buying opportunities. The piece includes detailed analysis of the current performance and future prospects of Bitcoin, Ether, BNB, Solana, XRP, Cardano, Avalanche, Dogecoin, Polkadot, and Polygon.
On January 9, a tweet claiming to announce the approval of Bitcoin (BTC) exchange-traded fund applications by the U.S. Securities and Exchange Commission was later revealed to be the result of a hacked SEC account. The false tweet briefly boosted Bitcoin's value to around $48,000 before it slipped back to $46,000 shortly after. Trading firm QCP Capital observed that an authentic approval wouldn't significantly impact the market, as it is already factored into the current price.
Despite short-term fluctuations, the overall market trend is expected to remain stable. Any potential decreases in price after genuine approval could in fact encourage long-term investors to snatch up Bitcoins at a more affordable rate. So what should Bitcoin and altcoin investors consider right now?
Bitcoin closed above its ascending triangle target on January 8, signalling an upward trend. The bullish target is set at $49,178. The bears are attempting to bring the price back below the $44,700 breakout point, potentially leading to a drop to the 50-day simple moving average of $42,078. Yet, if the price recovers from $44,700, it could spark a rally towards $49,178 and then $52,000.
Ether showed strong purchasing at lower levels, climbing from the 50-day SMA of $2,232 on January 9 and overcoming the resistance of $2,400. If the bulls hold the price over $2,400, it will signify an upward trend, potentially hitting first $2,700 and then the key mark of $3,000.
BNB exhibited resilience, remaining above the 20-day EMA of $298 on January 8 and 9. However, a further meaningful recovery has been challenging due to lower demand at higher prices. The market could plummet to the neckline if it closes under the 20-day EMA, providing an opportunity for a bounce back to $310.
On January 8, Solana recovered from its uptrend line but couldn't quite break through the downtrend line. The price could suddenly drop to $67 if it sinks below the uptrend line. A surge above the downtrend line, however, could signal bullish reinvestment skyrocketing the price to $117.
XRP continues to fluctuate around $0.57, indicating a tight market battle. Bears currently have the upper hand. A drop below $0.54 might trigger a freefall to $0.50. A leap above the moving averages, on the other hand, could suggest bullish momentum.
Cardano experienced a sharp rise from $0.46 on January 8 but got stuck near the 20-day EMA of $0.55. The price might drop back to its support of $0.46, signaling a potential precipitous decline to $0.37 if that level is breached.
Avalanche leveled off at the neckline mark of its head-and-shoulders pattern on January 9. The price could plummet to $26 if the $31 support level collapses. Sustained support above $31 could indicate market equilibrium and drive the price up to $38.
Dogecoin's price surged to the 20-day EMA of $0.09 on January 9. A drop to the next support level at $0.07 might occur unless the bulls can push the price above the 20-day EMA.
Despite slipping below the 50-day SMA of $6.96, Polkadot quickly picked up the pace again on January 8. However, bears could cause a dip to $5 if the price falls below the $6.50 support level. A significant upward movement could open the door to $8.80.
Finally, Polygon rebounded from $0.73 on January 8, but continues to face a sell-off around the 50-day SMA of $0.85. A downturn could lead to a slump to $0.70, while a rally could drive up the price to the crucial resistance point of $1.
Published At
1/10/2024 8:04:49 PM
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