Price analysis 1/8: SPX, DXY, BTC, ETH, BNB, SOL, XRP, ADA, AVAX, DOGE
Cryptocurrency traders keenly await the decision of the United States Securities and Exchange Commission (SEC), which is widely expected to approve one or more spot Bitcoin ( BTC ) exchange-traded fund (ETF) applications by Jan. 10.
What happens to Bitcoin’s price if a spot BTC ETF is approved remains the key question in the trader’s mind. Analysts remain divided, with some expecting the continuation of the rally while others anticipating a sell-off following the news.
Irrespective of the short-term price implications of the event, the ETF approval will likely be bullish for long-term investors. If one or more Bitcoin ETFs are approved, it will boost the sentiment of the entire sector and increase the hopes that eventually Ethereum ETF applications in the U.S. may also see the light of day.
Will Bitcoin and altcoins witness aggressive buying over the next few days? What are the crucial levels to watch out for? Let’s analyze the charts to find out.
SP 500 Index price analysis
The SP 500 Index (SPX) started a correction from 4,793 on Dec. 28, indicating that short-term traders may be booking profits.
The bears pulled the price below the 20-day exponential moving average (4,698) on Jan. 4, but the bulls have not yet given up. Buyers are trying to maintain the price above the 20-day EMA on Jan. 8. The 20-day EMA has flattened out, and the relative strength index (RSI) is just above the midpoint, suggesting a range-bound action in the near term. The index may oscillate between 4,650 and 4,793 for a while.
If the price breaks below 4,650, it will indicate the start of a deeper correction to 4,541. Buyers are expected to protect this level as a break below it will put the bears in command. On the upside, a rise above 4,793 will clear the path for a potential rally to 5,000.
U.S. Dollar Index price analysis
The U.S. Dollar Index (DXY) rebounded off the 101 support on Dec. 28 and rose above the 20-day EMA (102) on Jan. 3.
The index is witnessing a tough battle between the bulls and the bears near the 20-day EMA. If the price turns lower and maintains below the 20-day EMA, it will suggest that the bears have overpowered the bulls. That may result in a retest of the strong support at 101.
Alternatively, if the price bounces off the 20-day EMA, it will suggest that the bulls are trying to flip the level into support. The index will then try to rise to the overhead resistance at 104.50.
Bitcoin price analysis
Bitcoin price rallied above $46,000 on Jan. 8, and buyers will do their best to turn the $45,000 level, which had been a long-term resistance, to support.
The gradually upsloping 20-day EMA ($43,409) and the RSI in the positive area suggest that the bulls have the edge. If the price closes above $44,700, the BTC/USDT pair will complete the bullish ascending triangle pattern. The pair could then rally to the pattern target of $49,178 and subsequently to $52,000.
This bullish view will be invalidated if the price turns down and plunges below the support line of the triangle. The pair may fall to $40,000 and eventually to the vital support at $37,980.
Ether price analysis
Ether ( ETH ) has been range-bound between $2,400 and $2,100 for the past several days, indicating a status of indecision among the bulls and the bears.
If the price sustains below the 50-day SMA, the bears will try to sink the ETH/USDT pair to the solid support at $2,100. This remains the vital short-term level to watch out for because a break below it may open the doors for a drop to $1,900.
Conversely, the 20-day EMA ($2,266) remains the essential short-term resistance that will pose a solid challenge for the bulls. If buyers overcome this barrier, the pair may climb to the overhead resistance of $2,400. A break and close above $2,400 will indicate the start of the next leg of the uptrend toward $3,000.
BNB price analysis
BNB ( BNB ) turned down from $327 on Jan. 5 and broke below the 20-day EMA ($297) on Jan. 8, indicating that bears are trying to reverse the uptrend.
If the price sustains below the 20-day EMA, the selling could accelerate, and the BNB/USDT pair could descend to the neckline. This level is likely to act as a strong support, but the bears are expected to pounce on every rise.
Contrary to this assumption, if the price turns up from the 20-day EMA, it will suggest that the sentiment remains positive and traders are buying on dips. The pair could then gradually rise toward $327.
XRP price analysis
XRP ( XRP ) closed below the $0.57 support on Jan. 6, completing the bearish descending triangle pattern.
The 20-day EMA ($0.60) has turned down, and the RSI is in the negative zone, indicating that the bears are in command. Buyers are attempting to start a relief rally on Jan. 8 but are facing strong selling by the bears above $0.57.
If the price remains below $0.57, the selling pressure could increase, and the XRP/USDT pair may dive to the psychological support at $0.50. The bulls will have to shove the price above the downtrend line to signal a comeback.
Solana price analysis
Solana’s ( SOL ) rebound off the 20-day EMA ($96) on Jan. 4 was short-lived as higher levels attracted selling by the bears.
The SOL/USDT pair turned down and plunged below the 20-day EMA on Jan. 6 but is finding support at the uptrend line, which is just above the 50-day SMA ($79). If bulls kick the price above the 20-day EMA, the pair could rise to the downtrend line. This level may prove to be a formidable resistance for the bulls to cross.
On the downside, the bears will have to sink and sustain the price below the 50-day SMA to intensify selling. The pair may then tumble to $67.
Related: Bitcoin ETF buzz sends BTC price back to $45K as open interest mounts
Cardano price analysis
The bears cut short Cardano’s ( ADA ) recovery attempt near the 20-day EMA ($0.56) on Jan. 4 and resumed their selling from Jan. 5.
Aggressive selling yanked the price below the 50-day SMA ($0.52) on Jan. 7, signaling that bears are in control. The bulls are trying to start 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 may plunge to $0.37. If bulls want to prevent the fall, they will have to quickly drive the pair above the 20-day EMA. The pair may then climb to the downtrend line.
Avalanche price analysis
Avalanche ( AVAX ) turned down from the 20-day EMA ($38.09) on Jan. 4, indicating that the bears remain active at higher levels.
The selling resumed on Jan. 5, and the AVAX/USDT pair reached the crucial support at $31 on Jan. 8. Buyers are expected to defend the $31 level with vigor because if the support breaks down, the pair may plunge to $24.
If the price turns up from the current level, the pair is likely to rise to the 20-day EMA. If the price turns down from the 20-day EMA, the $31 support will be at risk of breaking down. Contrarily, a rise above the 20-day EMA will suggest that the bears are losing their grip. The pair may then climb to $44.
Dogecoin price analysis
The failure of the bulls to sustain Dogecoin ( DOGE ) above $0.08 encouraged the bears to increase their selling pressure.
The moving averages have completed a bearish crossover, and the RSI is in the negative territory, indicating that bears hold the edge. Sellers will try to pull the price to $0.07 and thereafter to $0.06, where the bulls may step in.
The first sign of strength will be a break and close above the 20-day EMA ($0.09). That could open the doors for a retest of the $0.10 to $0.11 resistance zone. If this zone is overcome, the DOGE/USDT pair could reach $0.16.
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.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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