There was a lot of hype built around the spot Bitcoin (BTC) exchange-traded funds, but when regulatory approval did not result in an upside move, traders may have decided to book profits, resulting in a sharp pullback to $41,500.
Some analysts have turned bearish and are projecting targets of $25,000 and lower on Bitcoin. While anything is possible in the markets, levels near $38,000 are likely to attract long-term investors who will keep an eye on the Bitcoin halving and the institutional inflows into the spot Bitcoin ETFs in the coming weeks.
Crypto market data daily view. Source: Coin360
Bloomberg ETF analyst Eric Balchunas said in a X (formerly Twitter) post on Jan. 13 that the newly launched ETFs witnessed inflows of $1.4 billion, while the Grayscale Bitcoin Trust (GBTC) saw an outflow of $579 million. Still, the net inflows in two trading sessions across the ETFs were $819 million.
Could the inflows into Bitcoin ETFs reverse the slide in Bitcoin and altcoins? Let’s look at the charts of the top 5 cryptocurrencies that may outperform in the near term.
Bitcoin price analysis
Bitcoin has been all over the place in the past few days. The failure to sustain the price above $48,000 may have tempted short-term traders to book profits, which started a sharp fall on Jan. 12.
BTC/USDT daily chart. Source: TradingView
The bulls and the bears are witnessing a tough battle near the support line of the ascending triangle pattern. Although buyers have managed to defend the support line on a closing basis, they have failed to start a meaningful recovery. This suggests that the bears are maintaining their pressure.
The 20-day exponential moving average ($43,933) has started to turn down, and the relative strength index (RSI) is just below the midpoint, indicating that the bears are attempting a comeback.
If the price maintains below the triangle, the BTC/USDT pair could slump to $40,000 and then to $37,980. Buyers will have to propel the price above $44,700 to regain control.
BTC/USDT 4-hour chart. Source: TradingView
The 20-EMA has turned down on the 4-hour chart, and the RSI is in the negative territory, indicating that the…
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