Bitcoin (BTC) Trying to Sustain Above $38,000 as Market Awaits ETF Decision

Bitcoin (BTC) is attempting to hold above the overhead resistance of $38,000 for the second consecutive day, signaling a potential start to the next leg of the uptrend. The recent delay in the decision on the applications of Franklin Templeton and Hashdex exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC) has increased excitement among market observers.

While many analysts believe that the ETF listing will be a significant moment for Bitcoin, there are concerns that traditional finance investors may exit their positions close to the ETF announcement, potentially causing a shallow correction. Genesis Trading’s head of derivatives, Joshua Lim, warned that retail investors may enter the market late, buying the rumor after traditional investors have already made their moves.

Despite these concerns, the macroeconomic conditions in early 2024 may limit the downside. Bill Ackman, CEO and founder of Pershing Square Capital Management, recently stated in an interview with Bloomberg that the U.S. Federal Reserve is likely to cut rates sooner than expected, potentially starting rate cuts in Q1 instead of the middle of the year.

Bitcoin Price Analysis

Bitcoin recently rose above the $37,980 resistance but failed to close above it, indicating strong resistance from bears. The repeated retest of a resistance level tends to weaken it, so if bulls can sustain the price above the 20-day exponential moving average ($36,820), there is a higher possibility of a rally to $40,000. However, a quick pullback below the 20-day EMA and the uptrend line could lead to a decline to the solid support at $34,800.

Ether Price Analysis

Ether (ETH) found support at the 20-day EMA ($2,006), suggesting that the bulls see dips as buying opportunities. If buyers can maintain the price above the 20-day EMA, there is a chance of a rally above the resistance zone between $2,137 and $2,200. This could complete a large ascending triangle pattern and start a new uptrend, with a pattern target of $3,400. However, a downturn and break below the 20-day EMA would indicate bearish pressure and could lead to a drop to the 50-day SMA ($1,853).

BNB Price Analysis

BNB tried to break below the $223 support but was met with strong demand, suggesting buyers are stepping in at lower levels. To initiate a meaningful recovery, bulls will need to push the price above the 20-day EMA ($235) and rally to $265. However, if the price turns down from the 20-day EMA, it could indicate that bears are trying to flip the level into resistance, increasing the chances of a fall below $223.

XRP Price Analysis

XRP has been trading between the moving averages, indicating indecision among bulls and bears. If buyers can push the price above the 20-day EMA, the XRP/USDT pair may rise to $0.67. However, a sharp downturn from the 20-day EMA and a drop below the 50-day SMA ($0.58) would signal bearish control and could lead to further selling below $0.56.

Solana Price Analysis

Solana (SOL) bounced back from the 20-day EMA ($54.71), indicating positive sentiment and strong buying interest. Bulls will attempt to push the price above the immediate resistance at $62.10, with a potential rally to $68. Overcoming this obstacle would invalidate the head-and-shoulders pattern and potentially start a sharp rally to $85. On the downside, the key support level is at $51.

Cardano Price Analysis

Cardano (ADA) found support at the 20-day EMA ($0.38), suggesting aggressive buying at lower levels. The higher lows improve the chances of an upside breakout. If bulls can push the price above $0.40, the ADA/USDT pair could gain momentum and climb to $0.42 and later to $0.46. Bears will need to pull the price below the 20-day EMA to make a comeback and potentially push it down to the solid support at $0.34.

Dogecoin Price Analysis

Dogecoin (DOGE) has repeatedly found support at the 20-day EMA ($0.08), indicating strong buying at lower levels. The upsloping moving averages and positive RSI suggest the path of least resistance is to the upside. Buyers will aim to push the price to $0.09 and potentially $0.10, while the 20-day EMA remains a key level to watch on the downside.

Toncoin Price Analysis

Toncoin (TON) has been trading above the 20-day EMA ($2.37), but struggles to push the price to $2.59, indicating a lack of demand at higher levels. Bears may attempt to pull the price below the moving averages, potentially leading to a decline to $2 and $1.89. On the upside, the first hurdle is at $2.59, and if buyers can surpass this resistance, a new uptrend to $4.03 could begin.

Chainlink Price Analysis

Chainlink (LINK) has consistently found support at the 20-day EMA ($14.07), suggesting strong defense from bulls. The resistance at $15.40 has held during three previous attempts, and a downturn from this level could lead to a drop to $12.83. On the other hand, a push above $15.40 could challenge the local high at $16.60, potentially leading to a rally to $18.30.

Avalanche Price Analysis

Avalanche (AVAX) rebounded from the 20-day EMA ($19.35), indicating positive sentiment and buying on dips. Bulls will need to overcome the resistance at $22 to strengthen their position and potentially rally to $24.69. Sellers are likely to put up a strong defense at this level, but if it is surpassed, the pair could reach $28.50. A downturn from $22 would suggest bearish pressure and potentially lead to a drop to the 20-day EMA.

Disclaimer: The above analysis is based on technical indicators and does not constitute financial advice. Trading cryptocurrencies carries a high level of risk and may not be suitable for all investors.