In this week’s market analysis, let’s take a look at several Bitcoin Beta tokens, especially with the Spot Bitcoin ETF Decision looming from January 8 to January 10, 2024. Brace yourselves for a rollercoaster ride as the market is flooded with news, FUD, and ever-changing narratives every hour!
The week kicked off with a market bloodbath, mainly because investors were playing it safe before the ETF Decision. There’s a prevailing sense of caution, anticipating a “Sell the news” situation if the Spot Bitcoin ETF Decision comes through.
What to expect in the week ahead!
Token Unlocks of the week: SOURCE
Forex Calendar for the Week: SOURCE
Bitcoin Market Analysis
Last week’s cautionary note about Bitcoin’s precarious situation proved on point, as BTC took a more than 9% nosedive within hours, aiming for the 40,000$ support on some exchanges after failing to hold at 44,500 dollars. The resulting large wick led to numerous long liquidations, causing concern across the crypto community on platforms like X timeline, where many share their insights. Looking ahead, if a Spot Bitcoin ETF gets the green light this week, Bitcoin could rally to 47,000$ or beyond. However, a sell-the-news event might follow as retail investors jump in. Notably, the surge in Bitcoin dominance played a role in the broader market downturn during the recent Asia trading session. As BTC.D climbs, altcoins are struggling to keep pace, signaling widespread weakness, as illustrated in the graphic below.
Ethereum Market Analysis
Beyond BTC, a crucial range on Ethereum, pegged at 2350$ – 2320$, couldn’t hold, causing ETH to dip to 2050$, barely $50 shy of last week’s robust support at 2100$. Looking ahead, the forecast is for ETH to bounce back this week but trail behind BTC. Anticipating substantial dominance for BTC, which could weaken alts, they’re expected to follow suit, albeit less robustly. The game plan for Ethereum remains unchanged, with the critical range at 2350$ – 2320$, and ETH currently trading a mere $50 above the steadfast support at 2100$.
This week, because we are expecting a significant increase in Bitcoin Dominance, it is sensible to look into Bitcoin Beta or tokens that perform well when Bitcoin Dominance increases!
ORDI marks a milestone as the first token on the Bitcoin blockchain following the BRC-20 fungible token standard. Back in November, crypto insider Andrew Kang sang its praises upon its Binance listing, and it’s now seen a sixfold surge since his endorsement. Today, Kang once again shines a light on ORDI, touting it as a solid beta for bitcoin. Technically, ORDI finds robust support, a linchpin for its stability at 70$. However, caution looms—if this support falters, ORDI might dip to 50$. Notably, there’s a liquidity-driven diagonal in ORDI’s trajectory; a strategic surge could propel it to an all-time high. Check out the plan inspired by Kang’s chart in the graphic below!
Blockstack presents a groundbreaking decentralized internet, empowering users to own their data and operate programs locally with just a browser portal. For traders eyeing a stellar BTC Beta, STX stands out, delivering smoother and more defined price action. This simplicity is a hit among traders, offering not only easy trading and investment but also a transformative utility for Bitcoin. Chart-wise, there are two ascending diagonals shaping up, playing dual roles as support and resistance. As long as STX stays above these diagonals, potential upside remains in view, steadily grinding higher!
Bitcoin Cash (BCC/BCH) is basically a sibling of Bitcoin, born out of a hard fork. Protocol-wise, it’s like its big brother, Bitcoin. But when it comes to the thrill of trading, it’s not exactly the life of the party. Looking at its price movements, it shares a common pattern with STX, showcasing two diagonal lines playing the roles of both support and resistance. Just like STX, the outlook for BCH stays on the sunny side, as long as it doesn’t dip too close to or below that trusty diagonal line!
MUBI is like a smooth operator, allowing users to effortlessly shift tokens between the Bitcoin blockchain and Ethereum Virtual Machine (EVM) networks, like Ethereum and BNB blockchains. It was an early player in the BRC-20 scene, and though it’s taken a bit of a dip from its initial high, it’s still a champ in terms of both price action and usefulness. Even with the recent downturn, the project is expanding, backed by a solid crew. The current focus is on the ranges, support, and resistance. Time will tell if MUBI can weather the storm and stage a comeback.
Here are some practical tips for the week:
- Weekly Open:
- Check if the weekly open is holding as support (bullish) or being rejected as resistance (bearish).
- 1H & 4H 200EMAs:
- See if the 1-hour and 4-hour 200 EMAs are reclaimed or held (positive for long positions) or rejected (favorable for short positions).
- Identify if the market is forming Higher Highs and Higher Lows (indicating an uptrend) or Lower Highs and Lower Lows (indicating a downtrend).
- Avoid Chop:
- Be cautious of ranging and balanced market conditions. Wait for confirmed breakout or breakdown signals to avoid trading in choppy environments.
Disclaimer: The information on this article is not intended to be, and should not be interpreted as, legal, tax, investment, financial, or other advice. Nothing in this article constitutes a solicitation, recommendation, endorsement, or offer to purchase or sell any crypto assets or other financial instruments by UseTheBitcoin or any third-party service provider. We recommend that you only spend what you can afford to lose, and that you always seek independent financial advice if you are unsure. You should not buy any crypto assets unless you fully understand the nature of the transaction and the risks associated.