Bitcoin (BTC) enthusiasts are currently on the edge of their seats as they await the verdict on spot BTC exchange-traded funds, with analysts predicting that the United States Securities and Exchange Commission will deliver a decision sometime between January 8 and January 10.
stx crypto: As traders anticipate the approval of a spot Bitcoin ETF, STX flash signals
The central question preoccupying the minds of investors is whether Bitcoin’s price will experience a significant surge in the event that one or more spot Bitcoin ETFs receive approval. While the approval could initially trigger a notable spike in Bitcoin’s value, there’s a cautious anticipation among traders that, after the initial euphoria, a classic scenario of “buy the rumor, sell the news” may unfold, leading to profit-taking activities.
On the flip side, if regulators opt not to approve the spot Bitcoin ETF, a sharp sell-off is considered a plausible outcome. However, market observers argue that such an event is unlikely to initiate a bear market. Traders are expected to swiftly shift their focus to the upcoming Bitcoin halving in April, effectively limiting the potential downside. Additionally, the prevailing narrative suggesting that Bitcoin ETFs could eventually secure approval might act as a catalyst, bringing bulls back into the market at lower price levels.
In the event that Bitcoin’s overall market sentiment remains positive, it is anticipated that select altcoins will resume their upward trends. To gain deeper insights, let’s delve into the technical charts of the top 5 cryptocurrencies poised for potential outperformance in the near term.
Bitcoin price analysis
Bitcoin recently formed a Doji candlestick pattern on January 5, followed by an inside-day candlestick pattern on January 6, signaling a state of indecision between the bullish and bearish forces in the market. Despite this, there’s a positive note as the price remains within the confines of the ascending triangle pattern.
For a confirmation of the bullish setup, Bitcoin needs to break and close above the $44,700 mark. Upon achieving this, the BTC/USDT pair may embark on the next leg of its upward trend, targeting $49,178 and potentially reaching $52,000. On the downside, the support line of the triangle holds significant importance. A breach of this level might lead to a decline to $40,000, followed by $37,980. Traders are likely to vigorously defend this critical support level.
Stacks price analysis
Stacks (STX) encountered a setback after encountering resistance at $1.78 on January 5; nevertheless, the subsequent pullback was brief. On January 6, the price demonstrated resilience by bouncing off the 20-day Exponential Moving Average (EMA) at $1.47, highlighting the persistent buying interest from bulls during dips.
Approaching the $1.78 resistance once again, it is expected that bears will fiercely defend this level, presenting a significant hurdle for buyers. If buyers successfully overcome this resistance, the STX/USDT pair could embark on a trajectory toward higher objectives at $2.20 and potentially $2.50.
In the event of a sharp downward reversal from the current level, the pair may find itself oscillating within the range delineated by the 20-day EMA and $1.78 for an interim period. To instigate a more substantial correction towards $1.20, bears would need to breach the support offered by the 20-day EMA.
Crucially, the focal point for the short term is the overhead resistance at $1.78. A breakthrough at this level by buyers would not only mark the initiation of the subsequent phase of the uptrend but could also propel the pair toward the $2 mark.
Conversely, a pronounced downturn from $1.78 would signal the persistent defense by bears. In such a scenario, the pair might experience a descent to the moving averages and further down to $1.36. A potential rebound from this level could lead to the pair maintaining a trading range within $1.36 to $1.78 for an extended duration. Investors and traders will keenly observe these critical levels to ascertain the potential trajectory of STX’s price action.
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