Bitcoin bulls have continued to find it challenging to push and sustain the coin above $44,701. What this suggests is that investors are not buying BTC aggressively prior to the US Securities and Exchange Commission’s decision on the Bitcoin spot ETF in January.
As of now, it is extremely tough to predict how market participants will react if the US regulator approves a Bitcoin ETF. If the SEC approves the ETF but results in low demand, we could witness a massive sell-off. However, in the event the ETF approval leads to strong inflows into Bitcoin ETFs, BTC’s price could surge significantly in the first few weeks.
The uncertainty surrounding Bitcoin’s future has prompted buying activity in altcoins, causing BTC’s dominance to drop to 51% from 55% this week.
Now, will altcoins continue outperforming Bitcoin, or will we see BTC resume an uptrend to regain dominance? Let’s study the price charts to find out.
Bitcoin Price Analysis
BTC has dropped below the 20-day EMA (Exponential Moving Average) of $42,504 to trade at $41,983 as of this writing. The good news, however, is that the coin still trades within the walls of the ascending triangle, meaning an upward move is a possibility. The bulls will have to propel Bitcoin above $44,701 to regain control of the market. If they achieve this, the coin could surge to $49,214, where the bears are likely active.
On the negative side, a break below the ascending triangle invalidates the bullish setup, and this might fuel massive selling activity that could sink Bitcoin to the 50-day SMA (Simple Moving Average) of $40,199. Moreover, the sellers may attempt to drag the coin to the $37,892 support.
Also read:Ethereum Price Analysis
ETH’s price is above the 20-day Exponential Moving Average of $2,270 and the descending triangle. Earlier this week, the token rallied to $2,441.87, where the bears sold their holdings, pulling Ethereum to $2,295.12 as of this writing. If the crypto asset plummets to $2,270 and bounces off from there, the bulls will try again to push ETH’s price above $2,441.87 for a rally to $3,002.
Conversely, if $2,270 does not hold, Ethereum could correct to $2,001.83, where we anticipate strong buying activity.
BNB Price Analysis
BNB’s rally was halted at $333.06 on Wednesday as short-term traders booked profit. The token has now dropped to $316.98. The bears are targeting the support at $301.84. If they manage to clear that hurdle, a price correction to $290.93 seems likely. However, if the bulls guard $301.84 and cause a rebound, BNB could rise above $333.06 to rally to $350.21.
Solana Price Analysis
Before we take a look at Solana’s price chart, it is worth mentioning that the altcoin has spent the better part of this week at position fur after overtaking BNB. However, it is now back at five after the bulls failed to keep SOL above $120. The crypto asset is now valued at $102.29. If it breaks below the $96.54 support level, a drop to the 20-day EMA of $92.29 or even to the 50-day SMA of $71.18 is likely.
On the contrary, a rebound from $96.54 would mean that sentiment around Solana is still positive, and the token may grow above $126.29 to jump to $155.62.
Polygon Price Analysis
After touching $1.08 on December 27, MATIC started a downward move, indicating that the sellers were booking profits. The crypto asset has now broken below $1 to trade at $0.956. If the bears tug Polygon to the 20-day Exponential Moving Average of $0.889 and the bulls succeed in guarding the level, the chances of a rally to $1.22 or even $1.29 will increase significantly. However, if $0.889 crumbles, a sharp fall to $0.70 is possible.
Polkadot Price Analysis
DOT is in a price correction phase after surging above $9 earlier this week. It now trades at $8.22. If Polkadot plunges below the breakout level of $7.95, it may reach the 20-day Exponential Moving Average of $7.75 or even dip to the 50-day Simple Moving Average of $6.39. On the other hand, a rebound from $7.95 makes a rally to $9.90 possible.
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