Bitcoin Price Collapses Following Spot ETF Approval, But ICP, TIA, MNT, SEI & Altcoins Surge Back

Unexpectedly, BTC prices dropped post-spot ETF approval; however, the bullish performance of altcoins might signal an early reversal.

Amidst heightened anticipation around spot Bitcoin ETFs and BTC tickers reaching $42,356, the absence of an upward surge post-regulatory approval prompted traders to secure profits, leading to a rapid decline to $41,500.

Certain analysts have adopted a bearish stance, forecasting Bitcoin targets of $25,000 and below. Despite market uncertainties, levels around $38,000 may draw interest from long-term investors monitoring the Bitcoin halving and institutional flows into spot Bitcoin ETFs in the upcoming weeks.

In a January 13 post on X (formerly Twitter), Bloomberg ETF analyst Eric Balchunas revealed that the recently introduced ETFs experienced $1.4 billion in inflows, contrasting with a $579 million outflow from the Grayscale Bitcoin Trust (GBTC). Despite this, the combined net inflows across the ETFs amounted to $819 million over two trading sessions.

Can the influx into Bitcoin ETFs potentially reverse the downturn in both Bitcoin and altcoins? Let’s analyze the charts of the leading 5 cryptocurrencies that could demonstrate strong performance in the short term.

Analysis Of Bitcoin’s Price

Bitcoin’s recent price movements have been quite erratic. The inability to maintain prices above $48,000 likely enticed short-term traders to secure profits, triggering a significant decline on January 12th.

A fierce battle ensues between the bulls and bears at the support line of the ascending triangle pattern. Despite buyers successfully defending the support line on a closing basis, a significant recovery has yet to materialize, indicating sustained pressure from the bears.

The 20-day exponential moving average ($43,933) is trending downward, and the relative strength index (RSI) hovers just below the midpoint, signaling a potential resurgence by the bears.

Should the price remain below the triangle, the BTC/USDT pair might decline to $40,000 and further to $37,980. To regain control, buyers must propel the price above $44,700.

On the 4-hour chart, the 20-EMA has taken a downward turn, and the RSI resides in negative territory, signaling a prevailing advantage for the bears. A breach below $42,000 could intensify selling pressure, potentially leading the pair to a drop at $41,500 and further down to $40,000.

To avert downside risks, bulls must propel the price above the 20-EMA. This action would pave the way for a rally towards $44,700, a pivotal overhead resistance that the bulls need to surpass.

Analysis Of Internet Computer Price

Internet Computer’s ICP tickers dropped to $12.93 but rebounded off the 20-day EMA ($12.11) on both January 8 and January 13, suggesting strong defense by the bulls at this level.

The ascending moving averages favor buyers, yet the RSI’s negative divergence hints at a potential slowdown in bullish momentum. A decisive breach and close above $14.21 may pave the way for a retest of the $16.30 high, and surpassing this level could target $18.

On the downside, the crucial support is the 20-day EMA. A breach of this level could shift the advantage to bears, potentially leading the ICP/USDT pair to a decline towards $9.36.

The pair has been in a consolidation phase, oscillating between $12 and $14, indicating a standoff between bulls and bears. A move above $14 by buyers might propel the pair towards $16.30.

Conversely, a drop below the moving averages would imply bears selling during rallies. This could lead to a retest of the $12 support, and a further break below this level might initiate a decline towards $10.

Analysis Of Celestia Price

Celestia (TIA) has maintained a robust upward trajectory for several days, highlighting a trend where each minor dip is met with buying interest.

At a minor psychological resistance of $20, the TIA/USDT pair might experience a potential pullback. Sustaining the price above $17.29 would signal bullish intent, enhancing the likelihood of breaking past $20. Subsequently, the pair could target the $25 level.

Conversely, a sharp downturn below $17.29 would indicate aggressive profit-taking by traders. In such a scenario, bears may seize the opportunity to push the pair toward the 20-day EMA ($14.89).

Gaining momentum post the breach of the $17.29 resistance, the pair identifies this level as crucial support. Expect any pullback to find reinforcement at the 20-EMA.

A rebound from the 20-EMA would affirm positive sentiment, indicating traders’ inclination to buy on dips. This could propel the pair into the next phase of the uptrend, targeting $23. Conversely, the bears would gain a short-term edge if the pair slips below $17.29, with the next support at the 50-SMA.

Analysis Of Mantle Price

On January 10, Mantle (MNT) successfully broke out of the ascending channel pattern, experiencing a sharp rally to $0.85 on January 11. However, the presence of a long wick in the day’s candlestick indicates profit-booking at higher levels.

Having reached the breakout level from the channel, where buyer intervention is anticipated, the gradual upward slope of both moving averages suggests bullish control. Nonetheless, caution is advised due to the negative divergence on the RSI.

If the price rebounds from the breakout level, buyers may attempt to push the MNT/USDT pair to $0.85 once again. While this level is expected to pose a significant barrier, a successful breach could propel the pair towards $1.

Attempting to halt the correction at the 20-EMA, the bulls faced resistance as the bears sold the bounce near $0.78, dragging the price to the 50-SMA. Any recovery is likely to encounter selling pressure at the 20-EMA. To demonstrate strength, the bulls must propel the price above the resistance zone, spanning from the 20-EMA to $0.78.

Alternatively, if the price continues its descent and breaches the 50-SMA, it could signify the potential end of the uptrend. In this scenario, the pair faces the risk of a decline to $0.65 and possibly further to $0.58.

Analysis Of Sei Price

Sei (SEI) has established a symmetrical triangle pattern, reflecting a state of uncertainty between bullish and bearish forces.

Typically acting as a continuation pattern, the symmetrical triangle may occasionally exhibit characteristics of a reversal pattern.

The upward trend of the 20-day EMA ($0.64) and the RSI residing in the positive zone suggest a favorable position for buyers. A decisive push by bulls above the resistance line would signify a resumption of the uptrend, with a pattern target of $1.10.

However, this optimistic outlook would be invalidated if the SEI/USDT pair descends further, breaching the triangle. Such a move would signal a potential shift in trend, initiating a deeper correction towards the 50-day SMA ($0.43).

The moving averages have stabilized, and the RSI is close to the midpoint, suggesting a equilibrium between supply and demand. Predicting the breakout direction from a triangle is challenging, making it advisable to wait for a clear rise above or fall below the triangle before considering significant positions.

Should the price remain above the moving averages, the bulls will likely aim for a push towards the resistance line. Conversely, if the price falls below the moving averages, the pair may experience a decline towards the support line.

* We hope this information will help you in your investment process, but this is not investment advice. Every investment carries risk, especially in this industry, so DYOR before making a decision.