Cryptocurrency markets are abuzz with the possibility that one or more applications for a spot Bitcoin exchange-traded fund (ETF) could be approved by the U.S. Securities and Exchange Commission (SEC) by January 10th. Bloomberg senior ETF analyst Eric Balchunas said: 95% Potential for ETF approval by regulators.
Balchunas is not the only one showing confidence. Former SEC Chairman Jay Clayton said in an interview: CNBC January 8 “Approval is inevitable. “There are no more decisions to make.”
ETF approval is a significant event for the cryptocurrency market, but what effect will it have on the price of Bitcoin? Analysts are divided over the near-term reaction as they expect the upward trend to continue, but others expect the approval to lead to profit-booking by traders in a classic case of buying on rumor and selling on news. However, most people believe that this will have a major impact on Bitcoin in the long term.
Geoff Kendrick, head of FX research at Standard Chartered, said in a January 8 note that the approval of a Bitcoin ETF could lead to large inflows, pushing the price of Bitcoin higher. $200,000 Until the end of next year. Kendrick reached his forecast by drawing a parallel with the first gold ETF product, which has soared four-fold in seven years. In the case of Bitcoin, analysts expect the Bitcoin ETF market to mature faster and realize profits within a short period of one to two years.
The approval of the Bitcoin ETF will raise hopes that an Ethereum ETF may be approved by regulators in the future, which could lead to a rise in the price of Ethereum and some altcoins.
Bitcoin and cryptocurrency markets are optimistic about the possibility of Bitcoin ETF approval, but SEC Chairman Gary Gensler warned investors about X (formerly Twitter). line About the risks of investing in cryptocurrency
Could Bitcoin and major altcoins begin the next phase of their bull run? What are the critical levels to watch out for? Let’s study the chart to find out.
BTC/USD market analysis
Bitcoin is trading within a rising channel pattern. The bulls once again proved their dominance with a sharp rise above the resistance level of $45,925 on January 8. This pushed the price up to the channel’s resistance level, but this is likely to act as a small hurdle.
A rising moving average signals an advantage for buyers, but a negative divergence in the Relative Strength Index (RSI) warns that bullish momentum may be weakening.
However, if the price rises above the channel, it indicates that the bulls are still in control. The BTC/USD pair may rise to the psychological level of $50,000 and then to $52,000. Sellers are likely to put up a strong defense at this level, but if the bulls prevail, the uptrend could extend to $60,000.
Contrary to this assumption, if the price falls from current levels, this suggests that bears will remain active at higher levels. The pair may fall towards the 20-day exponential moving average (EMA), which is an important level to watch out for.
If the price bounces off the 20-day EMA, it indicates that sentiment is still bullish and traders are buying on the dip. This increases the chances of a rise above the channel.
If you want to stop the downtrend, you need to get it below the 20-day EMA. This could open the door for channel support to decline.
ETH/USD market analysis
Ethereum has been fluctuating between $2,100 and $2,400 over the past few days, indicating indecision about the next direction move between bulls and bears.
Rising moving averages imply a slight advantage for buyers, but RSI near the midpoint suggests positive momentum has weakened. If the price declines and falls below the 20-day EMA, the ETH/USD pair may remain range-bound for several days.
The first sign of strength would be a close above $2,400. This signals the beginning of the next leg of the uptrend. The pair could then rise to the pattern target of $2,700 and later surge to the psychological level of $3,000.
This positive view will be invalidated if the price declines and falls below the $2,100 channel.
BNB/USD market analysis
Binance Coin is adjusting its upward trend. The decline on January 8th took the price below the 20-day EMA, but the long tail of the candlestick shows solid buying at lower levels.
The rising 20-day EMA and the RSI just above the midpoint give the bulls a slight edge. If the price rises from the 20-day EMA, the pair could rise to $338 and consolidate within this range for several days.
The BNB/USD pair will resume its upward trend if buyers push the price above the indirect resistance of $350. The pair could then soar to $400.
Conversely, if the price falls and remains below the 20-day EMA, it means bulls are rushing to take profits. A drop below the $290 support could intensify the selling and lead to a decline towards the 50-day simple moving average (SMA).
XRP/USD market analysis
Over the past few days, XRP’s price action has formed a symmetrical triangle pattern, indicating uncertainty between buyers and sellers. Predicting the direction of a triangle breakout is always tricky. Therefore, it is better to wait until a break occurs before starting to place large bets.
The 20-day EMA has started to decline and the RSI is in negative territory, indicating that the bears have a slight advantage. The pair may fall towards the triangle support line, which is likely to attract buyers.
If the price bounces off the support line, the XRP/USD pair may remain inside the triangle for some time.
If the price falls and remains above the triangle, the pair will turn bullish. This will start a new uptrend to $0.75, after which it may rise to $0.85. The pattern target for this setup is $1.08.
ADA/USD market analysis
Cardano fell sharply after breaking below a symmetrical triangle pattern on January 3rd. The price fell to $0.46 on January 8, but the sharp rebound suggests bulls are trying to break into support levels.
Any recovery attempt is likely to result in selling off the 20-day EMA. If the price falls from the 20-day EMA, it means that sentiment has turned negative and traders are selling on the bounce. The ADA/USD pair could then fluctuate between the 20-day EMA and $0.46 for some time.
The first sign of strength would be a breakout and close above the 20-day EMA. This movement signals the end of the adjustment phase. Afterwards, it may rise to $0.64 and then to $0.70.
The downside is that if the $0.46 support line is broken, the selling may intensify further. The price could then fall to $0.40 and eventually $0.35.
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