Bitcoin Price Crumbles After Spot ETF Approval, But Altcoins Rebound
BTC price fell to unexpected lows after the spot ETF approval, but bullish price action from altcoins could be an early sign of a reversal.
Bitcoin Price Analysis
The spot Bitcoin exchange-traded funds (ETFs) did not result in an upside move as expected, leading traders to book profits and causing Bitcoin's price to sharply pull back to $41,500. Some analysts are projecting even lower targets, such as $25,000. However, levels near $38,000 may attract long-term investors who are keeping an eye on the Bitcoin halving and institutional inflows into spot Bitcoin ETFs in the coming weeks.
Bloomberg ETF analyst Eric Balchunas reported that newly launched ETFs attracted inflows of $1.4 billion, while the Grayscale Bitcoin Trust (GBTC) experienced an outflow of $579 million. Net inflows across the ETFs in two trading sessions amounted to $819 million.
The influx of funds into Bitcoin ETFs may potentially reverse the slide in Bitcoin and altcoins. Let's take a look at the charts of the top 5 cryptocurrencies that may outperform in the near term.
Internet Computer Price Analysis
Internet Computer (ICP) bounced off the 20-day exponential moving average (EMA) on January 8 and again on January 13, indicating strong support. The upsloping moving averages favor buyers, although there is negative divergence on the relative strength index (RSI), suggesting a slowdown in bullish momentum. A break and close above $14.21 could lead to a retest of the high at $16.30, followed by a potential move towards $18.
On the downside, the 20-day EMA is a critical support level to watch. A break below this level could tilt the advantage in favor of the bears, with the ICP/USDT pair potentially dropping to $9.36.
Celestia Price Analysis
Celestia (TIA) has been in a strong uptrend, with minor dips being quickly bought. The presence of upsloping moving averages indicates an advantage for buyers, but negative divergence on the RSI suggests a potential slowdown. If the price stays above $17.29, it may signal an attempt by bulls to flip this level into support, paving the way for a break above $20 and a potential move towards $25.
However, a sharp downtrend below $17.29 could indicate aggressive profit booking by traders and may lead to a further decline, with the next support level seen at the 20-day EMA.
Mantle Price Analysis
Mantle (MNT) broke above an ascending channel pattern on January 10 and rallied to $0.85 on January 11. However, profit-booking at higher levels resulted in a sharp pullback. The breakout level from the channel is an important support level to watch, as buyers are expected to step in. Upsloping moving averages suggest an advantage for bulls, but negative divergence on the RSI raises caution.
If the price rebounds from the breakout level, the buyers may attempt another rally towards $0.85, with a potential move to $1. However, a break below the 50-day simple moving average (SMA) could indicate the end of the uptrend, with a decline to $0.65 and eventually $0.58.
Sei Price Analysis
Sei (SEI) has formed a symmetrical triangle pattern, which indicates indecision between buyers and sellers. The presence of a rising 20-day EMA and a positive RSI suggests an advantage for buyers. A breakout above the resistance line could mark the resumption of the uptrend, with a target of $1.10.
However, a downside break below the triangle could signal a potential trend change and a deeper correction towards the 50-day SMA. With moving averages flattening out and the RSI near the midpoint, it is difficult to predict the direction of the breakout. It is better to wait for a clear breakout before making any significant bets.
