Bitcoin experienced a 4% surge this week, highlighting strong buying interest at lower levels. Despite initial outflows of $242.3 million in U.S. spot Bitcoin exchange-traded funds (ETFs) on January 2, inflows rebounded sharply to $908.1 million the very next day, according to data from Farside Investors. This indicates growing investor confidence in Bitcoin’s potential to sustain its upward trajectory.
Further signs of diminishing selling pressure add to Bitcoin’s bullish case. CryptoQuant data reveals that Bitcoin inflows to exchanges — a measure of the amount sent for potential selling — have been on the decline since peaking at 98,748 BTC on November 25. Similarly, miner outflows have tapered off since hitting 25,367 BTC on November 11.
However, in the short term, analysts at Bitfinex shared that Bitcoin might consolidate within the $95,000 to $110,000 range until the end of January. They also downplayed the likelihood of significant price movement driven by US President-elect Donald Trump’s inauguration on January 20.
If Bitcoin decisively crosses the $100,000 mark, select altcoins could follow suit. Here’s an analysis of the top five cryptocurrencies that may outpace others in the near future.
Bitcoin Price Outlook
Bitcoin’s close above its moving averages on January 3 suggests waning selling pressure. The bulls aim to clear the significant $100,000 resistance. A breakout above this level could propel the BTC/USDT pair to its previous peak at $108,353, with further potential to reach $126,706 if momentum continues.
Conversely, a rejection at $100,000 might result in consolidation, with the pair trading between $90,000 and $100,000 for a while.
On the 4-hour chart, the 20-exponential moving average (EMA) is rising, and the relative strength index (RSI) hovers near 62, signaling bullish dominance. If Bitcoin surges past $100,000, it could test $102,800 and $105,350. A drop below the 20-EMA, however, might shift the advantage to bears, possibly dragging the price to the 50-simple moving average (SMA).
Solana (SOL) Analysis
Solana is encountering resistance at its 50-day SMA of $219. Nonetheless, the lack of significant pullback indicates resilience from buyers. With the 20-day EMA trending upward at $204 and RSI in bullish territory, further upside is possible.
If SOL/USDT climbs past the 50-day SMA, it could rise to $234 and later $247. However, a break below the 20-day EMA might signal increased bearish pressure, pulling the price to the uptrend line.
On the 4-hour chart, SOL has formed an ascending triangle, a sign of potential bullish continuation. A dip below the 20-EMA might lead to a retest of $202. A strong rebound from this level could propel the pair toward $220 and the triangle target of $229.
Sui (SUI) Analysis
Sui resumed its uptrend on January 3, breaking through the key $4.96 resistance. Bears might attempt to drag the price back below this level, aiming for a test of the 20-day EMA at $4.49. A deeper decline below $3.94 could signal a trend reversal.
However, if SUI/USDT bounces from $4.96, buyers might target $6.28. With the RSI in overbought territory and the 20-EMA rising, the bulls still hold the upper hand.
Internet Computer (ICP) Analysis
Internet Computer pushed above its moving averages on January 3, hinting at a possible short-term trend reversal. The current pullback faces support at the moving averages. A strong rebound could propel the ICP/USDT pair to $14 and $15.
On the flip side, a break below the 20-day EMA at $11.23 could open the door to a decline toward $9.60. On the 4-hour chart, ICP has completed a bullish ascending triangle, suggesting further upside if $12.74 resistance is breached.
Ethena (ENA) Analysis
Ethena has formed a cup-and-handle pattern, which could complete with a breakout above $1.30. If achieved, the ENA/USDT pair may rally to $1.52 and eventually $1.72, with a long-term target of $2.41.
The 20-day EMA at $1.04 is rising, and the RSI is bullish, favoring buyers. However, a drop below $1.10 or the 20-day EMA could signal weakening momentum, potentially dragging the price to $0.88.
As Bitcoin teeters near the $100,000 threshold, these altcoins are poised for potential gains if market sentiment stays strong. Investors will closely watch key support and resistance levels for clues about the next big move.
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