Due to the imminent announcement of the result of the decision of the United States Exchange Commission on the applications for the launch of Bitcoin Cash ETF in this country, it seems that Bitcoin buyers are ready to enter the market. Analysts expect the US Securities and Exchange Commission to comment on applications for Bitcoin Cash ETFs between January 8 and 10 (December 18-20).
Will Bitcoin price jump with the approval of one or more cash ETFs? This is the question that has confirmed the minds of investors these days. It is normal for the price to rise after the official news of the approval of the first ETF. However, according to the traditional rule “Buy with rumors and sell with news” It is expected that after the initial excitement subsides, a part of the traders will try to save profits.
Failure to approve requests to launch a Bitcoin Cash ETF could lead to a mass selloff in the market. Of course, due to the closeness of the next Bitcoin halving in April (April 1403), the start of a full-fledged bear market is out of the question. Meanwhile, the hope of confirmation of cash ETFs on another date can encourage buyers to enter price floors.
In the continuation of this article, we have presented the price analysis of Bitcoin and 4 other digital currencies in one-day and 4-hour time frames.
Bitcoin (BTC) price analysis
On January 5th (15th), Bitcoin recorded the Doji candlestick pattern on its daily chart, followed by the Inside-day candlestick pattern on January 6th (16th), which shows the indecision of buyers and sellers. Gives. The Inside Day candlestick pattern is formed when the one-day candlestick is completely formed (including the candlestick shadows) within the range of the floor and ceiling (High & Low) of the previous candlestick.
One promising note is that the price is still oscillating within the ascending triangle pattern on the chart. This bullish setup is completed by crossing and closing the price candle above the level of $44,700. In such a situation, the way for the price to jump towards the target of this pattern is opened at $49,178, and then it will be the turn of $52,000.
The support of the triangle pattern is also considered as one of the important levels that you should monitor if the market goes down. The loss of this support may lead to a fall of Bitcoin to 40,000 and even $37,980 as the fall deepens. Of course, buyers are expected to strongly defend this level.
In the 4-hour view of the Bitcoin market, the EMA 20 candlestick (EMA 20 – blue line on the chart) is moving without a slope, and the relative strength index (RSI) is slightly above the middle axis (level 50), which is a total balance between It shows buyers and sellers in the market. The upward movement can continue with the crossing and closing of the price candle above $44,700, after which a slight resistance can be seen around $45,879. It is worth mentioning that crossing this resistance will increase the probability of Bitcoin jumping up to $49,178.
If the market is bearish, the price falling below the 50 candlestick simple moving average (SMA 50 – red line on the chart) will be a sign of a decrease in the strength of the buyers. After that, the risk of the price falling will intensify until the support of the triangle pattern on the chart. Buyers have no choice but to defend this level to maintain the bullish perspective of this pattern.
Internet Computer Price Analysis (ICP)
The internet is a multi-threaded computer that is experiencing a fast pullback, and as it turns out, the previous buyers of this digital currency are continuously leaving the market.
Buyers have an opportunity to stop further losses near the 20-day moving average ($11.18). If the price recovers strongly from this level, it means that traders' sentiment towards the ICP is still positive and they are buying at the price floors. After that, conditions will be provided for the efforts of buyers to bring the computer internet to $14.40 and then $16.
The negative point of the ICP one-day view is the formation of a negative divergence between the price and the relative strength index, which shows the weakness of the trend. A drop and close of the daily candle below the 20-day EMA will mean that the short-term uptrend is over.
On the 4-hour view, the EMA of 20 candlesticks has completed a bearish breakout after breaking the SMA of 50 candles downwards, which means that in the short term the conditions are in favor of sellers. If the price continues to fall below $11.70, the path will open for a further fall to $11 and then $9.36.
The end of the bearish correction can be confirmed when the candlestick buyers push the price above the moving averages and consolidate their position after this high. In this case, he can expect the price to jump up to 15 and then 16 dollars. At the same time, it is expected that the strength of the sellers will increase again by approaching 16 dollars.
Arbitrage Price Analysis (ARB)
Arbitrum failed to maintain its position above $2, and probably this is the reason why a part of the market was encouraged to save profits and the price went down to the breaking level of $1.75.
At the limit of $1.75, a tough competition between buyers and sellers of arbitrage is expected. If the conditions progress in such a way that the price returns strongly from this level upwards, it can be said that the buyers have turned this level into support. In this case, the possibility of price growth will increase until the peak of January 4 (December 14) at $2.11. The next wave of this upward move can be a jump up to $2.50.
On the other hand, if the $1.75 level is missed, Arbitrum's price is likely to drop to the 20-day moving average at $1.59. Buyers should defend this level with all their strength, because breaking it could lead to arbitrage down to $1.35.
In Arbitrom's 4-hour market view, it can be seen that the price has recovered somewhat from the $1.75 level, but is facing a tough resistance in the 20 candlestick EMA range. This is not a good sign, because it can be interpreted that traders see any increase in price as an opportunity to sell. Sellers are also looking to put themselves in a better position by pulling the price below the 50 candlestick simple moving average. If they manage to do this, we should probably wait for Arbitrum to drop to $1.50.
To avoid this drop, buyers should quickly push the price above the 20 candlestick EMA and then the upper resistance at $1.96. In this case, they will have a chance to test the $2.12 resistance once again.
STX price analysis
Stax recently experienced a rebound from the upper resistance at $1.78, but as you can see from the one-day chart, this pullback was short-lived.
The price on January 6 (16) experienced an upward return from the level of the 20-day moving average ($1.47), which clearly shows the action of a part of the market to buy at the price floors. Buyers have now pushed the price to the $1.78 mark and are expected to face a lot of effort from sellers in this range. If STX buyers succeed in crossing this resistance, the price can grow up to $2.20 and then $2.50.
On the other hand, a rapid downward return of the price from this level can lead to the continuation of the price fluctuation between $1.78 and the 20-day moving average for several days. It should be mentioned that the price falling below the moving average can open the way for a further drop to $1.20.
On the 4-hour chart, the closeness of the price to the resistance of $1.78 attracts attention. If the buyers manage to cross this level, it can be said that the next wave of the upward trend of Stax has started, and after that it will be the turn of the $2 target.
On the other hand, the rapid downward correction of the price from the $1.78 level shows the resistance of sellers in this range. In this case, it is possible that the price will first fall to the moving averages and then $1.36. Besides, the return of Stax from $1.36 can keep the price between this level and $1.78 for some time.
Maker price analysis (MKR)
Maker has recently completed a pullback on its uptrend and as you can see from the chart, buyers have not let the $1,651 breakout level be missed.
The 20-day exponential moving average (at $1,615) has taken an upward slope, and the relative strength index is at the border of the overbought range, which shows the dominance of buyers on the market. Holding the $1,651 level means that buyers have turned it into a support, after which it opens the way for MKR to jump to $2,000.
If the market goes down, the 20-day moving average is an important level that you should monitor. A break of this level could lead to a drop to the 50-day SMA at $1,483.
As it can be seen from the 4-hour view of the market maker, a part of the market has bought at the floor when the price reached the upward trend line on the chart. Buyers have pushed the price above the EMA of 20 candles and are trying to extend this bullish correction by crossing $1,825. If they succeed in doing so, Maker could first reach $1,900 and then $2,000.
To weaken the trend, sellers should push the price below the uptrend line on the chart, and the bearish trend will intensify when the $1,651 support is broken. After that, the price of MKR may fall to $1,500.
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