By James Davis
Bitcoin is currently witnessing an intense battle between the bears and bulls at $40,000. The bulls are optimistic about the future of BTC following the launch of Bitcoin ETFs, which are now trading in the American market. Bears, on the other hand, have kept their focus on the expected outflows from Grayscale Bitcoin Trust worth $3.3 billion. They believe Grayscale will pull BTC’s price to lower levels if it continues dumping its coins.
Meanwhile, BitMEX former CEO Arthur Hayes says Bitcoin might plummet to $30,000 over the coming months, arguing that the surging shipping costs resulting from attacks launched on ships by Houthis in the Middle East could make it difficult for the US Federal Reserve to cut interest rates this year.
Hayes, however, remains bullish in the long term. He says the solid demand for Bitcoin ETF could cause a massive bull run when macroeconomic factors become favorable.
So, which support and resistance levels should traders monitor over the next few days? We take a look at the price charts to get answers.
Bitcoin Price Analysis
BTC crossed below $40,000 on January 22nd, suggesting that short traders were rushing to book profits. The coin touched the $38,878 strong support, which the bulls managed to hold, pushing Bitcoin to $40,056 as of this writing. If the digital asset continues moving upwards, it will face resistance at $42,102, the 20-day Exponential Moving Average.
In the event Bitcoin reverses from there, it may cross below $38,378 to touch the $34,050 support. If that happens, BTC might trade between $34,050 and $38,878 for some time. On the positive side, if the bulls push the coin above $42,102, the move may suggest a comeback. A rally to $44,693 becomes possible if the bullish momentum picks up.
Ethereum Price Analysis
ETH made a weak rebound from the 20-day Exponential Moving Average of $2,398.45 on January 19th. The lack of buying activity at higher levels encouraged the bears to pull the token below the $2,356 breakout level on January 22nd.
The Relative Strength Index has now dropped to 38.70, signaling that the sellers have a slight advantage. If they tug Ethereum to the $2,103 support and the bulls fail to guard the level, we might witness a downtrend to $1,890.
Our negative view won’t be valid if the bulls sustain Ethereum above $2,103. That’s because an upward move to $2,401.20 would become more likely.
BNB Price Analysis
BNB sellers have now managed to drag the digital asset below the 20-day Exponential Moving Average of $304.80. It now trades at $292.19. With the descending triangle already formed following the price fall, BNB could soon touch $287.85 and even break below this level to head toward $231.46.
On the contrary, a rebound from $287.85 would signal the bulls’ presence and their determination to protect BNB from falling further. The token may then grow above $304.80 and rally to $330.10, where a massive bear presence is anticipated.
Solana Price Analysis
Solana’s price is still correcting. The bears’ strong pullback has caused the token to plunge below the 50-day Simple Moving Average of $92.17. Solana changes hands for $88.39 as of this writing. A bearish divergence is about to form on the moving averages. If it forms, the prospects of a further price fall will increase significantly. SOL might drop to $77.34 and then to $65.49.
Meanwhile, the bulls need to push Solana above $92.17 to make a rally to $100 possible.
XRP Price Analysis
XRP has been on a free fall since plummeting below the 20-day Exponential Moving Average of $0.5693012 on January 15th. The token has now crossed below the $0.5409080 support to trade at $0.5197009. With the Resistance Strength Index inside the oversold zone, the bears are advantaged. They may tug XRP to $0.4689380, where we expect the buyers to exert buying pressure. But if they don’t, a fall to $0.4102840 becomes the bears’ next target. From a bullish point of view, a rally to $0.6739500 is possible if the bulls push XRP above $0.5693012.