Bitcoin (BTC) is trading near its daily low, with a significant drop to $40,350, while Solana (SOL) has fallen below $100, signaling the start of a negative trend we previously warned about. The leading cryptocurrency’s break below the rising parallel channel on January 12 suggested a potential deeper correction, with a target area below $40,000.
Experts have set a primary target at $38,500 for BTC. The decline is attributed to the aftermath of ETF approvals, with speculation that GBTC redemptions could exceed new demand from other ETF issuers. Many, including Bloomberg’s Eric, believe that GBTC’s decreasing BTC reserves might lead to direct sales rather than transfers to other issuers.
This situation, coupled with $5 billion in additional sales post-ETF approval, has further shaken investor confidence. Meanwhile, Solana’s price has broken its rising support trend line, which had been stable for about 100 days, and is now finding buyers at $86.
The daily RSI supports the bearish trend, with BTC making new daily lows. Analysts, including one known as Lmn12121, expect a new low around $70 for SOL. Another analyst, The Lord of Entry, points out the significance of the break in the rising support trend line, indicating a potential drop to the $77 area.
Finally, BluntzCapital also predicts a fall to $70 for SOL, based on Elliott Wave analysis, suggesting that SOL is in the C wave of an A-B-C correction pattern, which could lead to a pullback to the $70-$72 support range. Despite the downturn, surpassing the triangle’s support trend line could bring a $115 target back into play for Solana.