Cryptocurrency traders are anxiously awaiting the decision of the United States Securities and Exchange Commission (SEC), which is widely expected to approve one or more Bitcoin ETF spot applications before the 10th. January.
What will happen to BTC price if a spot Bitcoin ETF is approved remains an important question on traders’ minds. Analysts remain divided, with some expecting the rally to continue while others predict a sell-off following the news.
Regardless of the short-term price impact of this event, ETF approval is likely to be positive for long-term investors. If one or more Bitcoin ETFs are approved, it will boost the sentiment of the entire market and increase hopes that eventual Ethereum funds ETFs in the US could also see the light.
Will Bitcoin and altcoins see strong buying in the next few days? What are the important critical levels to pay attention to? Let’s analyze the chart to find out.
SPX technical analysis
The S&P 500 Index (SPX) started a correction from 4,793 on December 28, suggesting that short-term traders may be taking profits.
The bears pulled the price below the 20-day exponential moving averages (4,698) on January 4, but the bulls have not given up yet. Buyers are attempting to sustain the price above the 20-day EMA on January 8. The 20-day EMA has flattened and the relative strength index (RSI) is just above the midpoint, suggesting range-bound action next time. The index may fluctuate between 4,650 – 4,793 for a while longer.
If the price breaks below 4,650, it would indicate the start of a deeper correction towards 4,541. Buyers are expected to defend this level as a break below it will give the bears the upper hand. On the other hand, a rise above 4,793 would pave the way for a potential rally to 5,000.
DXY technical analysis
The US Dollar Index (DXY) recovered from the 101 support on December 28 and rose above the 20-day EMA (102) on January 3.
The index is witnessing a tough fight between bulls and bears near the 20-day EMA. If the price declines and sustains below the 20-day EMA, it shows that the bears have overwhelmed the bulls. That could lead to a retest of the strong support at 101.
Additionally, if the price bounces from the 20-day EMA, it will show that the bulls are trying to turn this level into support. The index will then try to rise to the resistance level of 104.50.
BTC technical analysis
Bitcoin price rose above $46,000 on January 8, and buyers will try their best to turn $45,000, which has been long-term resistance, into support.
The 20-day EMA ($43,409) is sloping up and the RSI is in the positive zone, which shows that the bulls have the advantage. If the price closes above $44,700, the BTC/USDT pair will complete an ascending triangle pattern. The pair can then rise to the pattern’s target at $49,178 and above it to $52,000.
This bullish view will be invalidated if the price turns down and breaks below the support line of the triangle. The pair could drop to $40,000 and eventually reach the critical support at $37,980 in that case.
ETH technical analysis
Ether (ETH) has been range-bound between $2,100 and $2,400 for the past several days, showing indecision between bulls and bears.
If the price sustains below the 50-day SMA, the bears will attempt to push the ETH/USDT pair down to solid support at $2,100. This remains an important short-term level to watch as a break below it could open the door to a drop to $1,900.
On the contrary, the 20-day EMA ($2,266) remains short-term resistance for the bulls. If the buyers overcome this hurdle, the pair could rise to the $2,400 resistance level. A breakout and close above $2,400 would indicate the start of the next leg of the uptrend towards $3,000.
BNB technical analysis
BNB (BNB) fell from $327 on January 5 and broke below the 20-day EMA ($297) on January 8, showing that bears are trying to regain control.
If the price sustains below the 20-day EMA, selling could accelerate and the BNB/USDT pair could drop to the neckline. This level could act as a strong support, but the bears are expected to attack every time the price rises.
Contrary to this assumption, if the price reclaims the 20-day EMA, it shows that sentiment remains positive and traders are buying at lower prices. The pair could then gradually rise to $327.
XRP technical analysis
XRP (XRP) closed below the $0.57 support on January 6, completing a descending triangle pattern.
The 20-day EMA ($0.60) has turned down and the RSI is in the negative zone, showing that the bears have the upper hand. Buyers are attempting to initiate a relief rally on Jan. 8 but are facing strong selling by the bears above $0.57.
If the price remains below $0.57, selling pressure could increase and the XRP/USDT pair could drop to the psychological support at $0.50. The bulls will have to push the price above the downtrend line to signal a comeback.
SOL technical analysis
Solana (SOL)’s recovery from the 20-day EMA ($96) on Jan. 4 was short-lived as higher levels attracted bear selling.
The SOL/USDT pair turned down and broke below the 20-day EMA on January 6 but is finding support at the uptrend line, just above the 50-day SMA ($79). If the bulls push the price above the 20-day EMA, the pair can rally to the downtrend line. This level could prove to be a formidable resistance for the bulls to overcome.
On the other hand, the bears will have to decline and maintain the price below the 50-day SMA to increase selling. The pair could then drop to $67.
ADA technical analysis
The bears stopped Cardano (ADA)’s recovery attempt near the 20-day EMA ($0.56) on January 4 and continued selling from January 5.
Strong selling pulled the price below the 50-day SMA ($0.52) on Jan. 7, signaling that the bears are in control. The bulls are attempting to initiate a relief rally from $0.46, but may face strong selling at the 20-day EMA.
If the price turns down from the 20-day EMA and breaks below $0.46, the selling could accelerate and the ADA/USDT pair could drop to $0.37. If the bulls want to stop the decline, they will have to quickly take the pair above the 20-day EMA. The pair could then climb to the downtrend line.
AVAX technical analysis
Avalanche (AVAX) turned down from the 20-day EMA ($38.09) on Jan. 4, showing that bears remain active at higher levels.
Selling continued on January 5, and the AVAX/USDT pair reached the critical support level at $31 on January 8. Buyers are expected to defend the $31 level aggressively as if the support fails breaking down, the pair can drop to $24.
If the price rises from the current levels, the pair is likely to rise to the 20-day EMA. If the price turns down from the 20-day EMA, the $31 support is at risk of breaking. Conversely, a rise above the 20-day EMA will show that the bears are losing control. The pair could then rise to $44.
DOGE technical analysis
The failure of the bulls to sustain Dogecoin (DOGE) above $0.08 has encouraged the bears to increase selling pressure.
The moving averages have created a bearish cross and the RSI is in the negative zone, showing that the bears hold the advantage. Sellers will try to drag the price down to $0.07 and then $0.06, where the bulls could jump in.
The first sign of strength will be a breakout and close above the 20-day EMA ($0.09). That could open the door to a retest of the $0.10 to $0.11 resistance zone. If this zone is conquered, the DOGE/USDT pair can reach $0.16.
