Bitcoin continues to trade near the $43,700 level, indicating slight resistance from sellers. However, the selling pressure on Bitcoin remains weak as traders anticipate the approval of one or more spot Bitcoin exchange-traded funds (ETFs) by the SEC in January. The potential approval of a spot Bitcoin ETF is expected to initially trigger a strong market reaction, but focus is likely to shift to the actual demand for ETFs thereafter.
Trade firm QCP Capital suggests that initial demand for a BTC Spot ETF may fall short of market expectations, potentially prompting investors to take profits and causing a pullback. Meanwhile, popular altcoin projects like SOL, XRP, and AVAX are also in focus, with varying expectations for their performance.
Solana (SOL) has shown bullish signs, rising from the 20-day EMA level of $74 on December 18 to $100 on December 22, indicating aggressive buying. If buyers can push the price above $100, the SOL/USDT pair may aim for $143. However, the RSI remains in the overbought region, suggesting that the rally might be overheated and a correction or consolidation could be imminent. Key support levels are at $80 and the 20-day EMA.
XRP continues to trade between $0.56 and $0.74, with moving averages flattening and the RSI near the midpoint, indicating that range-bound movement could persist. A break above the moving averages could lead to a rise to $0.67 and then $0.74, while a downturn would suggest minor selling, potentially leading to a retest of the crucial $0.56 support.
Avalanche (AVAX) has signaled the start of a new uptrend by breaking above the December 16 resistance at $45.33. A minor hurdle at $50 is expected, but as long as the price doesn’t fall below $38, it indicates positive sentiment and buying on dips. A rally above $50 could take the AVAX/USDT pair up to $70. However, the overbought RSI suggests the possibility of a near-term consolidation or correction, with a drop below $38 needed for sellers to take control.
