By James Davis
After struggling to keep Bitcoin below $40,000 over the past few days, the bears have finally given up and allowed the bulls to push the largest and most popular coin to $41,784 as of this writing. However, some crypto analysts anticipate that Bitcoin may resume a downtrend over the coming weeks.
Chris Burniske, a director at venture capital company Placeholder, took to X on Friday to claim that Bitcoin might trade below $30,000 before the Bitcoin halving in April, citing selling pressure from Grayscale Bitcoin Trust, which has been sending BTC to Coinbase and cashing it out.
However, analysts at JP Morgan beg to differ. They say Grayscale Bitcoin Trust has already sold most of the BTC it was planning to sell, thus reducing the downward pressure. So, the analysts expect the coin to resume an uptrend.
All bull markets come with price corrections, which force short-term investors to sell as long-term traders buy the dip. When a price correction occurs, crypto analysts recommend waiting for a strong support level to be formed before buying.
That said, let’s take a look at the price charts of leading digital currencies.
Bitcoin Price Analysis
On January 23rd, the bulls bought the dip at the newly formed support level of $37,994, thrusting the coin above the 20-day EMA (Exponential Moving Average) of $41,890 on January 26th. But as mentioned earlier, BTC has corrected to $41,784. If the buyers sustain the coin above $41,890, it may surge toward the 50-day SMA (Simple Moving Average) of $42,967 and even reach $44,600, where the bears are likely to level tough opposition.
Meanwhile, if Bitcoin’s price starts declining now, the bears may try to pull the digital currency below $37,994 and drag it to $34,804.
Ethereum Price Analysis
Ethereum bulls successfully defended the $2,187 support level on January 23rd. The move has allowed them to propel ETH to $2,268 at press time. Still, the token is trading below the downtrend line. The bulls must push ETH to $2,300 to cross this line. If that happens, the second-largest digital currency by market capitalization may rally to the 50-day Simple Moving Average of $2,335.09 and even further toward the 20-day Exponential Moving Average of $2,367.26.
On the negative side, if Ethereum trends down and reaches $2,187, then the bulls fail to guard, it could boost the possibility of a plunge to $2,102.65.
BNB Price Analysis
The bulls’ presence was felt near the $289.04 support level when intense buying activity occurred on January 24th, pushing BNB to $304.39 as of this writing. While the token is now above the 20-day Exponential Moving Average of $303.90, the Relative Strength Index (51.68) shows a balance between demand and supply, which means BNB might trade within its current price for a while.
However, if the digital asset rises above the downtrend line somewhere at $318.23, the bulls could regain complete control that they might use to their advantage to push BNB to $339.89. On the other hand, a break below $289.04 would cause a bearish setup to form, and the bears could target $237.45.
Solana Price Analysis
SOL found a new support at $79.80 on January 22nd. The bulls exerted significant buying pressure that pushed the token’s price to $91.93. They still have to thrust the digital currency above the 20-day Exponential Moving Average of $93.28 to improve the prospects of hitting the $100 target. If the buyers propel and sustain Solana above $100, the digital currency could touch $108.67.
Contrary to this bullish assumption, a drop to $65.98 looks likely if the bears tug SOL below $79.80.
Dogecoin Price Analysis
The buyers have been defending the support at $0.0789493 over the past few days. They must now push Dogecoin above the downtrend line to reduce the pressure from the sellers. If that occurs, we might witness DOGE rise to $0.1062801, where tough resistance is expected. On the other hand, if $0.0789493 crumbles, a drop to $0.0698503 is possible.
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