On January 3rd, the crypto market witnessed a sharp fall following a report from crypto research company Matrixport that the United States Securities and Exchange Commission will deny a Bitcoin spot ETF.
However, since Matrixport did not provide sufficient evidence on why the commission would reject the Bitcoin ETF, the crypto market started to recover yesterday. Bloomberg ETF researcher James Seyffart maintains that there is a 90% probability that the SEC will approve an ETF by January 10th.
Market analysts expect Bitcoin to lead other digital currencies in rallying when an ETF is approved over the coming days.
Let’s now find out the critical resistance and support levels to keep an eye on in the next few days.
Bitcoin Price Analysis
Traders found themselves in a bull trap when Bitcoin crossed above the $44,703 resistance level on Wednesday and then quickly reversed to the 50-day Simple Moving Average (SMA) of $40,926, where buyers purchased the dip. With the Relative Strength Index at 54 and the 20-day Exponential Moving Average (EMA) of $42,867 flattening, we anticipate BTC to continue trading in a $40,926 – $45,789 range for a few days.
However, if the range is broken at $45,789, Bitcoin could rally to $50,022, and in case $40,926 crumbles, a downward move to the $37,783 support seems likely.
Ethereum Price Analysis
ETH managed to retest the $2,441.82 resistance on January 2nd. However, a long wick-candlestick that was formed on the token’s 1-day price chart showed massive selling activity at higher prices. The bears pulled Ethereum near the $2,103.70 support before the bulls bought the dip, thrusting the token to $2,238.95 as of this writing. Based on the price action witnessed over the last few days, ETH is likely to trade between $2,103.70 and $2,441.82 for some time.
However, in the event the bears drag the crypto asset below $2,103.70, a deep correction to $1,903.23 may occur. On the positive side, a break above $2,441.82 could make a rally to $3,002.84 a reality.
BNB Price Analysis
BNB’s latest rally encountered massive resistance at $330.45 yesterday. The bears succeeded in pulling the digital currency to the $309.88 support, but it has now rebounded, rising to $318.20. If the bulls propel and sustain BNB above $330.45, the token could surge to $350.26. On the other hand, a plunge below $309.88 could allow the bears to tug BNB to the 20-day Exponential Moving Average of $291.10.
Solana Price Analysis
After bouncing off from $100.58 on Monday, SOL rose to $117.40, where it was subjected to selling pressure on January 2nd. It now trades at $101.54. If Solana reverses further and eventually drops below the 20-day Exponential Moving Average of $97.03, it may touch the support at the 50-day Simple Moving Average of $77.90. Conversely, if the bulls hold SOL above $97.03, the cryptocurrency might try to overcome resistance at $117.40 to rally to $126.84.
XRP Price Analysis
XRP now trades at $0.5709702. A sustained drop below $0.57 would lead to the formation of a descending triangle. If this happens, the bears could force a downward move to the $0.4609529 support. In case the buyers are unable to defend this level, another dip to $0.4198023 is likely. From a positive perspective, XRP might surge to the $0.6708810 resistance level if the bulls sustain it above the 20-day Exponential Moving Average of $0.6197023.
Avalanche Price Analysis
Avalanche is one of the tokens that recorded notable rallies last year. The token ended 2023 with a 207% growth. However, AVAX hasn’t had a great start this year. It is down 7.8% since the start of the week and now changes hands for $37.33. The current price indicates that the bulls have failed to guard the $38.03 support level. A descending triangle has already been formed, so a corrective move looks likely. If that’s the case, Avalanche could find the first support at $32.15. If no buying activity is witnessed here, a dip to $26.06 becomes possible.
This bearish view will be invalid if AVAX grows above the 20-day EMA of $39.85. That’s because the digital asset will likely surge to $44.97.
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