US SEC’s Tweet Creates Volatility: Bitcoin ETF Approval Confusion
On January 9, there was high drama in the cryptocurrency market as the United States Securities and Exchange Commission (SEC) tweeted that spot Bitcoin (BTC) exchange-traded fund (ETF) applications were approved. However, it was later revealed that the SEC’s social account had been hacked, and no ETFs had actually been approved. The tweet caused a momentary surge in Bitcoin’s price, as it quickly climbed to around $48,000 before slipping back to $46,000 within minutes. The trading firm QCP Capital noted that the muted response to the tweet was likely due to the fact that the approval was already anticipated and priced into the market.
Bitcoin Price Analysis: Bulls Aim for $49K Target, Bears Eye $37,980
Bitcoin recently closed above the ascending triangle pattern, signaling the start of the next leg of its uptrend. The pattern target for this bullish setup is $49,178. However, there is a risk that the bears could pull the price back below the breakout level of $44,700, which could lead to a drop to the 50-day simple moving average at $42,078. If the selling pressure intensifies, Bitcoin could even plummet to $37,980. On the other hand, if the price rebounds from $44,700, it would suggest that the bulls are trying to flip this level into support, which would improve the chances of a rally to $49,178 and potentially $52,000.
Ether Rally Continues: Will the Resistance at $2,400 Be Broken?
Ether has seen a strong recovery, bouncing off the 50-day simple moving average at $2,232 and breaking above the overhead resistance at $2,400. If buyers can sustain the price above this level, it would indicate the resumption of the uptrend. The next targets for Ether would be $2,700 and the psychologically significant level of $3,000. However, if the price turns down and breaks below the 20-day exponential moving average at $2,294, it would suggest a period of range-bound price action between $2,100 and $2,400.
BNB Consolidates with Uncertain Direction: Can It Surpass $310?
Binance Coin (BNB) has been struggling to start a meaningful recovery, despite staying above the 20-day exponential moving average at $298. The lack of demand at higher levels has kept BNB in a consolidating phase. If the price closes below the 20-day EMA, the BNB/USDT pair could plunge to the neckline, but if the bulls can push the price and sustain it above $310, it would indicate a slowing down of selling pressure. This could lead to a rally attempt to $327 and possibly even to the previous high at $338.
Solana Faces Resistance: Will Bulls Overcome the Downtrend Line?
Solana (SOL) experienced a bounce from the uptrend line but struggled to surpass the downtrend line. The flattening 20-day exponential moving average and the relative strength index (RSI) near the midpoint suggest a balance between supply and demand. This indicates that SOL could remain stuck between the uptrend and downtrend lines for some time. If the price drops below the uptrend line, the selling could intensify, leading to a potential drop to $67. On the other hand, if the price turns up and breaks above the downtrend line, it would indicate that the bulls are back in control, potentially leading to a rise to $117.
Please note that this analysis is not investment advice or a recommendation. Each investor should conduct their own research and analysis before making any investment decisions.
Analyst comment
1. US SEC’s Tweet Creates Volatility: Bitcoin ETF Approval Confusion – Negative news. The tweet initially caused a surge in Bitcoin’s price but was later revealed to be a result of a hack. The market is likely to experience short-term volatility as traders react to the confusion.
2. Bitcoin Price Analysis: Bulls Aim for $49K Target, Bears Eye $37,980 – Neutral news. The analysis presents both bullish and bearish scenarios for Bitcoin’s price. The market could see a rally towards $49,178 or a potential drop to $37,980, depending on the outcome.
3. Ether Rally Continues: Will the Resistance at $2,400 Be Broken? – Positive news. Ether has experienced a strong recovery and breaking above the resistance at $2,400 suggests a possible resumption of the uptrend. The market could see further gains towards $2,700 and $3,000.
4. BNB Consolidates with Uncertain Direction: Can It Surpass $310? – Neutral news. Binance Coin is in a consolidating phase with uncertain direction. The market could see a potential plunge or a rally attempt, depending on whether the price closes below or sustains above $310.
5. Solana Faces Resistance: Will Bulls Overcome the Downtrend Line? – Neutral news. Solana is facing a struggle to surpass the downtrend line, indicating a balance between supply and demand. The market could see a potential drop to $67 or a rise to $117, depending on the price movement.
Overall, the market is likely to experience volatility and uncertainty as traders react to various factors. Each cryptocurrency’s price will be influenced by its own specific conditions and market dynamics.
