Bitcoin (BTC) bulls are likely to still hold their position as the BTC Exchange Traded Fund (ETF) spot verdict approaches. Analysts expect the U.S. Securities and Exchange Commission to immediately accept applications for Bitcoin ETFs between January 8th and January 10th.
Will Bitcoin soar if one or more Spot Bitcoin ETFs are approved? That's the central question on investors' minds. Following the ETF's approval, Bitcoin's price is likely to skyrocket, but after the initial euphoria, traders may start taking profits in a classic case of buying the rumor and selling the news.
If regulators do not approve a spot Bitcoin ETF, it could fall sharply. However, a bear market is unlikely to begin as traders quickly shift their focus to April's Bitcoin halving, limiting the downside. Additionally, the narrative that a Bitcoin ETF could eventually be approved could send bulls back to lower levels.
If Bitcoin remains positive, some altcoins may resume their uptrend. Let's take a look at the chart of the top 5 cryptocurrencies that are likely to outperform in the short term.
Bitcoin price analysis
Bitcoin formed a doge candlestick pattern on January 5th and an intraday candlestick pattern on January 6th, indicating indecision between bulls and bears.
However, it is a positive sign that the price remains inside the ascending triangle pattern. This bullish setup completes on a break and closes above $44,700. If so, the BTC/USDT pair could start the next leg of the uptrend towards the pattern target of $49,178 and then $52,000.
The triangular support line is an important level to watch on the downside. If this level breaks, the pair could fall to $40,000 and ultimately $37,980. Buyers are likely to guard this level diligently.
The 20 Exponential Moving Average has flattened and the Relative Strength Index (RSI) is just above the midpoint, suggesting an equilibrium between buyers and sellers. A close above $44,700 could accelerate the bullish momentum. There is some resistance at $45,879, but a break above this level will increase the chances of a rally to $49,178.
On the downside, a break below the 50 simple moving average would suggest that the bulls are tired. The pair may then fall to the triangle support line. Buyers will need to protect this level if they want the bullish pattern to remain intact.
Internet computer price analysis
Internet Computer (ICP) has been declining sharply over the past few days, suggesting that the bulls are rushing to the exit.
The bulls will try to block a correction at the 20-day EMA ($11.18). If the price rebounds strongly from the 20-day EMA, sentiment remains positive and would suggest that traders are buying on the dip. Thereafter, the bulls will make another attempt to push the ICP/USDT pair to $14.40 and eventually $16.
The risk with this assumption is that the RSI forms a negative divergence, indicating weakening momentum. A close below the 20-day EMA indicates that the uptrend may end in the short term.
The moving averages have completed a bearish crossover and the RSI is trading in negative territory, suggesting that the short-term trend favors the bears. If the price falls below $11.70, the pair could fall to $11 and then $9.36.
Bulls need to push the price above the moving average and sustain it to indicate that the correction may be over. That could start a rally to $15 and then $16. This level could once again attract strong selling by the bears.
arbitrage price analysis
Arbitrum (ARB) failed to sustain above $2, which may have encouraged short-term traders to take profits. This caused the price to reach the $1.75 breakout level.
The ARB/USDT pair is expected to see a fierce battle between buyers and sellers around $1.75. If the price rises sharply from $1.75, it would indicate that the bulls have flipped that level into support. This would increase the likelihood of a retest of the January 4 high of $2.11. A break above this level could start the next leg of the uptrend to $2.50.
In fact, a break below the $1.75 level could lead to a fall to the 20-day EMA ($1.59). Bulls will have to defend this level hard as a break below this level could trigger a fall to $1.35.
The pair has rebounded from the $1.75 support but is facing stiff resistance at the 20-EMA. This is a negative sign as it indicates that traders are viewing the rise as a selling opportunity. The bears will try to strengthen their position by pushing the price below the 50-SMA. If successful, the pair could plummet to $1.50.
If buyers want to arrest the decline, the price will need to quickly move above the 20-EMA and then the immediate resistance at $1.96. This could retest the overhead resistance at $2.12.
Related: VanEck advisor says Bitcoin ETF solves the psychology of unit bias
stack price analysis
Stax (STX) fell from the resistance level above $1.78 on January 5th, but the pullback was short-lived.
The price has turned higher from the 20-day EMA ($1.47) on January 6th, indicating that bulls are continuing to buy the dip. The bulls have pushed the price to the $1.78 resistance level, where it is likely to encounter strong selling by the bears. If buyers clear the overhead hurdle, the STX/USDT pair could rise to $2.20 and even $2.50.
Conversely, if the price drops sharply from current levels, the currency pair could fluctuate between the 20-day EMA and $1.78 for some time. The bears will need to push the price below the 20-day EMA to initiate a deeper correction towards $1.20.
The pair has reached the overhead resistance at $1.78, which remains an important short-term level to watch. If buyers overcome this barrier, it will signal the beginning of the next bull market. After that, the pair could begin his journey to $2.
On the other hand, if the price drops sharply from $1.78, it would suggest that the bears continue to defend that level. The pair could fall to the moving average and then $1.36. If the price rebounds from this level, it could stay within the $1.36 to $1.78 range for some time.
Manufacturer price analysis
Maker (MKR) has retraced its uptrend, but the slight positive is that the bulls were able to push the price back below the breakout level at $1,651.
The 20-day EMA ($1,615) is sloping upward and the RSI is close to the overbought zone, indicating that buyers have the advantage. If the rebound from $1,651 holds, it would indicate that the bulls have reversed the level to support. Thereafter, the MKR/USDT pair may attempt a rally to the overhead resistance level at $2,000.
The 20-day EMA is an important support to watch on the downside. A close below this level could push the pair up to the 50-day SMA ($1,483).
The bulls bought a push to the uptrend line on the 4-hour chart, suggesting solid buying at lower levels. The bulls are looking to push the price above the 20-EMA and extend the recovery above the $1,825 resistance. If that happens, the pair could rise to $1,900 and then $2,000.
The bears will need to drop the price below the uptrend line to weaken the bulls. A break above the $1,651 level could accelerate the selling. After that, the pair could plummet to $1,500.
This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making decisions.
