When GBTC outflows decline and traders’ attention turns to the April BTC halving, the downside of bitcoin appears limited.
January has seen volatility in Bitcoin. In the early going, the price increased to around $49,000 in anticipation of the introduction of spot Bitcoin exchange-traded funds (ETFs), but it later fell when large liquidations occurred in the Grayscale Bitcoin Trust (GBTC).
The fact that GBTC outflows have been declining over the last several days is encouraging, nevertheless.
According to real-time data from intelligence firm Arkham, Grayscale’s fund has been withdrawing $340 million; this is a slight rise over the $270 million withdrawal from January 30 but far less than the $641 million peak outflow from January 22.
It is probable that traders will gradually turn their attention from the flows of Bitcoin ETFs to the impending halving in April.
A tweet on X (previously Twitter) on January 29th, made by pseudonymous cryptocurrency trader Rekt Capital, stated that any decline in Bitcoin during the next two weeks might be the final opportunity to purchase before the pre-halving rally begins.
When GBTC outflows decline and traders’ attention turns to the April BTC halving, the downside of bitcoin appears limited. – Bitcoin Analyst
Which crucial overhead resistance levels must be overcome in order for the upward trend in Bitcoin and a few other altcoins to continue? To find out, let’s examine the charts of the top ten cryptocurrencies.
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On January 29, the price of bitcoin increased above the 50-day simple moving average ($42,893), but the bulls were unable to sustain their gains and push the price above $44,700.
On January 31, the bears attempted to drive the price down below the 20-day exponential moving average ($42,277), but the bulls held firm.
This may indicate an attempt by the buyers to turn the 20-day EMA into support.
Bulls will attempt to push the price above $44,700 once more. The BTC/USDT pair might gain momentum and soar towards $49,000 if they take that action.
On the other hand, a decline from $44,700 in price will indicate that the bears are firmly holding the level. After that, the pair might spend some time trading within a narrow range between $44,700 and the 20-day EMA.
The price is being pulled down and kept below the moving averages by sellers. If they are successful, it will indicate that the ETH/USDT pair might briefly swing between $2,100 and $2,400.
Additionally, the RSI slightly below the middle and the flattish moving averages suggest a potential near-term consolidation.
It is expected that the next trending move would start on a break over $2,400 or below $2,100. Should the $2,400 barrier hold, the pair could rise as high as $2,700 and ultimately $3,000.
The BNB/USDT pair may decline to the 50-day SMA ($295) and then to the crucial support at $288 if the price drops and holds below the 20-day EMA ($305).
It is anticipated that buyers will defend this level vigorously, as the pair will complete a descending triangle pattern if they do not. The pattern target for this negative setting is $238.
The bearish setup will be nullified if the price rises from its current level and breaks above the downtrend line. After that, the two might rise to $338.
By driving the price above the closest resistance level at $107, buyers attempted to bolster their position even further, but sellers had other ideas.
The Jan. 30 candlestick’s lengthy wick indicates that the bears are still in it and are selling at $107.
It will indicate that dips are being bought if the price rises from either the current level or the moving averages. That will make a break above $107 more likely. The SOL/USDT pair might rise to $117 and then $126 if that occurs.
Bulls are attempting to hold onto the $0.50 support, but a support level’s ability to withstand repeated retests tends to erode it. The XRP/USDT pair might drop below the critical support level at $0.46 if the price stays below $0.50.
The first significant hurdle on the upside is still the 20-day EMA. The pair may rise to the downtrend line if bulls are able to break over this obstacle. This level should be fiercely defended by the bears.
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The RSI is close to the middle and the 20-day EMA has flattened down, indicating range-bound behaviour in the near term. The price of the ADA/USDT pair might drop to $0.46 and eventually reach the channel’s support line if it continues to stay below the 20-day EMA.
Alternatively, the pair can move up to the downtrend line if the price moves higher from its current level and above $0.54. In order to imply that the correction might be finished, buyers will need to get past this barrier.
On January 30, the price broke below the downtrend line and hit the 20-day EMA ($34.29). The AVAX/USDT pair might stay inside the channel if it breaks below the 20-day EMA.
On the other hand, it will indicate that bulls are in control if the price rises and breaks above the downtrend line. The following leg of the up advance might then begin for the pair at $44, leading to the psychological resistance at $50.
Bullish attempts to break above the 20-day EMA have been continually thwarted by the bears, but the fact that buyers have not given up much ground is encouraging. This implies that a move higher towards the downtrend line is anticipated by the bulls.
This is a critical level to keep an eye on since a break above it will signal a shift in the short-term trend. The DOGE/USDT pair can rise in the direction of the $0.10 – $0.11 resistance range.
This optimistic assessment will be rendered incorrect should the pair decline and close below the $0.07 support level.
Both moving averages have flattened out, and the RSI is just below the midpoint, indicating that the selling pressure is reducing. The DOT/USDT pair may stay range-bound between $6 and the 50-day SMA ($7.46) for some time.
If the price rebounds off the current level, the bulls will try to push the pair to the 50-day SMA.
A break and close above this resistance could propel the pair to $8.50. On the contrary, a break below the neckline could pull the pair to $6. If this level cracks, the pair may slide to $4.80.
Usually, in a range, traders buy near the support and sell at the resistance. The break above the moving averages on Jan. 29 opened the doors for a rally to the overhead resistance at $17.32. This level is likely to attract strong selling by the bears.
If the price turns down sharply from $17.32, the LINK/USDT pair may extend its stay inside the range for a few more days.
The bulls will have to drive and sustain the price above $17.32 to signal the start of the next leg of the uptrend. The target objective on the upside is $21.79.
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