By Frank Martin (MoneyAmped.com)
Earlier this week, Bitcoin fell to $89,503 for the first time since November, signaling that the sellers were attempting to take control. The drop, however, did not faze many analysts who argued that BTC has historically witnessed dips in January after every halving year before rallying.
In January 2017, Bitcoin saw a 30% drop, and a similar trend happened in January 2021, when the coin plunged 25%. On both occasions, BTC recovered and recorded new all-time highs in the months that followed.
Besides the historical January performance, Bitcoin is experiencing selling pressure due to speculations that the Federal Reserve may fail to cut rates in its upcoming FOMC meeting. According to data on the CME Group’s FedWatch Tool, traders think there is only a 2.7% chance that the Fed will slash rates at the end of January.
As retail investors sit on the fence, waiting to see how the markets will react to the Fed’s next move, institutional investors are accumulating Bitcoin. On Monday, software firm MicroStrategy purchased 2,530 coins, expanding its BTC treasury to 450,000. Also, Italian banking group Intesa Sanpaolo acquired 11 Bitcoin for $1 million on Tuesday.
Will growing institutional interest in Bitcoin prompt rallies? If so, which critical resistance levels should retail investors monitor? Let’s explore the price charts to find answers.
Bitcoin Price Analysis
The buyers pushed Bitcoin above the 20-day Exponential Moving Average of $95,727 on January 14th, suggesting their intent to regain control. However, the sellers have been mounting pressure near the 50-day Simple Moving Average of $97,302 as they don’t want Bitcoin to cross $100,000.
But if the sellers let their guard down and allow $97,302 to crumble, BTC could head to the $103,188 resistance. On the other hand, the buyers’ failure to protect the $90,035 support could trigger a bearish move to $85,061.
Ethereum Price Analysis
Although Ethereum is still priced below the 20-day Exponential Moving Average of $3,384.18, it has managed to cross above the support line of the ascending triangle, reducing the risk of plunging to the $2,852.18 support or even to $2,403.
Increased buying pressure could push the token above the 50-day Simple Moving Average of $3,572. If this happens, the bearish setup (head and shoulders pattern) will be invalidated, giving the buyers a massive edge. As such, ETH could jump to $4,091.74.
XRP Price Analysis
XRP is rallying significantly as the US Securities and Exchange Commission Chair Gary Gensler prepares to leave office on Monday. Investors believe that Gensler’s decision to step down could put an end to the ongoing war against XRP and its issuer, Ripple, hence the rally.
The token is trading slightly above the $2.801 resistance. If buying pressure continues, we anticipate a surge to $2.915 and later to $3.208. Conversely, a sustained fall below $2.801 could lead to a downtrend toward the 20-day Exponential Moving Average of $2.357.
Solana Price Analysis
SOL bounced off from the $175.28 support at the start of the week. Analysts at Cointelegraph claim that the rebound will likely prompt a rally to $200 as they expect Solana bulls to defeat the bears at the 20-day Exponential Moving Average of $196.43. If their prediction is correct, SOL stands a chance of rallying to the 50-day Simple Moving Average of $211.32.
On the contrary, a solid downtrend to the $155.43 support may occur if the buyers fail to mount pressure at $175.28. Even worse, a dip to $133 is possible if $155 gives way.
Dogecoin Price Analysis
DOGE is changing hands above the 20-day Exponential Moving Average of $0.314, giving the buyers a slight advantage. More buying could enable the largest meme coin by market valuation to rally to the 50-day Simple Moving Average of $0.371 and later to the $0.416 resistance.
On the bearish side, Dogecoin could fall to the $0.270 support and later to $0.236 if the buyers don’t start a recovery rally at $0.301.
