There was a lot of hype built around the spot Bitcoin (BTC) exchange-traded funds, but when regulatory approval did not result in an upside move, traders may have decided to book profits, resulting in a sharp pullback to $41,500.
Some analysts have turned bearish and are projecting targets of $25,000 and lower on Bitcoin. While anything is possible in the markets, levels near $38,000 are likely to attract long-term investors who will keep an eye on the Bitcoin halving and the institutional inflows into the spot Bitcoin ETFs in the coming weeks.
Bloomberg ETF analyst Eric Balchunas said in a X (formerly Twitter) post on Jan. 13 that the newly launched ETFs witnessed inflows of $1.4 billion, while the Grayscale Bitcoin Trust (GBTC) saw an outflow of $579 million. Still, the net inflows in two trading sessions across the ETFs were $819 million.
Could the inflows into Bitcoin ETFs reverse the slide in Bitcoin and altcoins? Let’s look at the charts of the top 5 cryptocurrencies that may outperform in the near term.
Bitcoin price analysis
Bitcoin has been all over the place in the past few days. The failure to sustain the price above $48,000 may have tempted short-term traders to book profits, which started a sharp fall on Jan. 12.
The bulls and the bears are witnessing a tough battle near the support line of the ascending triangle pattern. Although buyers have managed to defend the support line on a closing basis, they have failed to start a meaningful recovery. This suggests that the bears are maintaining their pressure.
The 20-day exponential moving average ($43,933) has started to turn down, and the relative strength index (RSI) is just below the midpoint, indicating that the bears are attempting a comeback.
If the price maintains below the triangle, the BTC/USDT pair could slump to $40,000 and then to $37,980. Buyers will have to propel the price above $44,700 to regain control.
The 20-EMA has turned down on the 4-hour chart, and the RSI is in the negative territory, indicating that the bears have the upper hand. If the price breaks below $42,000, the selling could pick up, and the pair may plummet to $41,500 and then to $40,000.
If bulls want to prevent the downside, they will have to push the price above the 20-EMA. That will clear the path for a rally to $44,700, which remains the crucial overhead resistance for the bulls to overcome.
Internet Computer price analysis
Internet Computer (ICP) bounced off the 20-day EMA ($12.11) on Jan. 8 and again on Jan. 13, indicating that the bulls are fiercely defending the level.
The upsloping moving averages indicate an advantage to buyers, but the negative divergence on the RSI suggests that the bullish momentum may be slowing down. A break and close above $14.21 could open the doors for a retest of the high at $16.30. If this level is cleared, the next stop is likely to be $18.
The 20-day EMA remains the critical support to watch out for on the downside. If this level is taken out, the advantage will tilt in favor of the bears. The ICP/USDT pair may then plunge to $9.36.
The pair has been consolidating between $12 and $14 for some time. This suggests indecision between the bulls and the bears. If buyers kick the price above $14, the pair could accelerate toward $16.30.
Contrarily, if the price skids below the moving averages, it will suggest that the bears are selling on rallies. The price may then retest the support at $12. A break below this level will open the doors for a slide to $10.
Celestia price analysis
Celestia (TIA) has been in a strong uptrend for several days, indicating that every minor dip is being purchased.
There is a minor psychological resistance at $20, where the TIA/USDT pair may witness a pullback. If buyers do not allow the price to slip below $17.29, it will indicate that the bulls are trying to flip the level into support. That will improve the prospects of a break above $20. The pair may then ascend to $25.
Conversely, if the price turns down sharply and slumps below $17.29, it will suggest that the traders are aggressively booking profits. The bears will then sense an opportunity and try to yank the pair to the 20-day EMA ($14.89).
The pair picked up momentum after breaking above the $17.29 resistance. Hence, this remains the key level to watch out for on the downside. Any pullback is likely to find support at the 20-EMA.
If the price rebounds off the 20-EMA, it will suggest that the sentiment remains positive and traders are buying on dips. The pair may then start the next leg of the uptrend toward $23. The short-term advantage will favor the bears if they yank the pair below $17.29. The next support is at the 50-SMA.
Related: Google Play Store in India blocks Binance, OKX in response to FIU notice
Mantle price analysis
Mantle (MNT) broke above the ascending channel pattern on Jan. 10 and rallied sharply to $0.85 on Jan. 11, but the long wick on the day’s candlestick shows profit-booking at higher levels.
The price has reached the breakout level from the channel, where buyers are expected to step in. Both moving averages are sloping up gradually, indicating that bulls have the upper hand, but the negative divergence on the RSI warrants caution.
If the price rebounds off the breakout level from the channel, the buyers will again try to kick the MNT/USDT pair to $0.85. This level is likely to act as a major hurdle, but if crossed, the pair could surge to $1.
The bulls tried to stall the correction at the 20-EMA, but the bears had other plans. They sold the bounce near $0.78 and pulled the price to the 50-SMA. Any recovery attempt is likely to face selling at the 20-EMA. The bulls will have to shove the price above the overhead resistance zone between the 20-EMA and $0.78 to signal strength.
Instead, if the price continues lower and breaks below the 50-SMA, it will indicate that the uptrend may be over. The pair then risks a fall to $0.65 and eventually to $0.58.
Sei price analysis
Sei (SEI) has formed a symmetrical triangle pattern, indicating indecision between the bulls and the bears.
Generally, the symmetrical triangle acts as a continuation pattern, but on rare occasions, it may behave as a reversal pattern.
The rising 20-day EMA ($0.64) and the RSI in the positive zone indicate that buyers have the edge. If bulls thrust the price above the resistance line, it will mark the resumption of the uptrend. The pattern target of this setup is $1.10.
This positive view will be invalidated if the SEI/USDT pair continues lower and plunges below the triangle. That will signal a potential trend change and the start of a deeper correction toward the 50-day SMA ($0.43).
The moving averages have flattened out, and the RSI is near the midpoint, indicating a balance between supply and demand. It is difficult to predict the direction of the breakout from a triangle. Hence it is better to wait for the price to rise above or fall below the triangle before initiating large bets.
If the price stays above the moving averages, the bulls will try to push the pair to the resistance line. On the other hand, if the price slips below the moving averages, the pair may drop to the support line.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.