Price analysis 1/31: BTC, ETH, BNB, SOL, XRP, ADA, AVAX, DOGE, DOT, LINK

Bitcoin’s downside looks limited as GBTC outflows drop and traders shift focus to the BTC halving in April.

Bitcoin (BTC) has been volatile in January. Early on, the price rose near $49,000 in anticipation of the spot Bitcoin exchange-traded funds (ETFs) launch, but then sold off as the Grayscale Bitcoin Trust (GBTC) saw massive liquidations. 

However, a positive sign is that GBTC’s outflows have been reducing in the past few days. Live data from intelligence firm Arkham shows outflows of $340 million from Grayscale’s fund, a marginal increase over Jan. 30 outflow of $270 million but way lower than the peak outflow of $641 million on Jan. 22.

Traders are likely to gradually shift their focus from the Bitcoin ETF flows to the upcoming halving in April. Pseudonymous crypto trader Rekt Capital said in a X post (formerly Twitter) on Jan. 29 that any dip in Bitcoin over the next two weeks could be the last chance to buy before the pre-halving rally kicks in.

What are the critical overhead resistance levels that need to be crossed for the up move to resume in Bitcoin and select altcoins? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

Bitcoin price analysis

Bitcoin rose above the 50-day simple moving average ($42,893) on Jan. 29, but the bulls could not maintain the momentum and catapult the price above $44,700.

The bears tried to sink the price below the 20-day exponential moving average ($42,277) on Jan. 31, but the bulls held their ground. This suggests the buyers are trying to flip the 20-day EMA into support.

The bulls will again try to propel the price above $44,700. If they do that, the BTC/USDT pair could pick up momentum and skyrocket toward $49,000.

Alternatively, if the price turns down from $44,700, it will suggest that the bears are vigorously defending the level. The pair may then trade inside a tight range between the 20-day EMA and $44,700 for some time.

Ether price analysis

The bulls kicked Ether (ETH) above the moving averages on Jan. 30 but could not clear the overhead hurdle at $2,400.

Sellers are trying to tug and maintain the price below the moving averages. If they succeed, it will signal that the ETH/USDT pair may oscillate inside the $2,100 to $2,400 range for a while. The flattish moving averages and the RSI just below the midpoint also indicate a possible consolidation in the near term.

The next trending move is likely to begin on a break above $2,400 or below $2,100. If the $2,400 level gives way, the pair may soar to $2,700 and eventually to $3,000.

BNB price analysis

BNB (BNB) turned lower from the downtrend line on Jan. 30, indicating that the bears are fiercely guarding this level.

If the price dips and sustains below the 20-day EMA ($305), the BNB/USDT pair could dip to the 50-day SMA ($295) and thereafter to the vital support at $288. Buyers are expected to defend this level with all their might because if they fail to do that, the pair will complete a descending triangle pattern. This negative setup has a pattern target of $238.

If the price turns up from the current level and breaks above the downtrend line, it will invalidate the bearish setup. The pair may then climb to $338.

Solana price analysis

Solana’s (SOL) break above the downtrend line is the first sign that the bulls are trying to make a comeback.

Buyers tried to strengthen their position further by pushing the price above the nearest resistance at $107, but the sellers had other plans. The long wick on the Jan. 30 candlestick shows that the bears have not given up and are selling at $107.

If the price turns up from the current level or the moving averages, it will suggest that dips are being bought. That will increase the likelihood of a break above $107. If that happens, the SOL/USDT pair may surge to $117 and then to $126.

XRP price analysis

The failure of the bulls to push XRP (XRP) above the 20-day EMA ($0.54) on Jan. 30 may have attracted strong selling by the bears.

The bulls are trying to protect the $0.50 support, but the repeated retest of a support level tends to weaken it. If the price maintains below $0.50, the XRP/USDT pair may descend to the crucial support at $0.46.

The 20-day EMA remains the first key resistance on the upside. If bulls overcome this barrier, the pair could rally to the downtrend line. The bears are expected to defend this level aggressively.

Cardano price analysis

Buyers drove Cardano (ADA) above the 20-day EMA ($0.51) on Jan. 29, but could not build upon this strength. This suggests that bears are active at higher levels.

The 20-day EMA has flattened out, and the RSI is near the midpoint, signaling a range-bound action in the near term. If the price sustains below the 20-day EMA, the ADA/USDT pair could plunge to $0.46 and later to the channel’s support line.

Instead, if the price turns up from the current level and rises above $0.54, the pair may climb to the downtrend line. Buyers will have to overcome this obstacle to suggest that the correction may be over.

Avalanche price analysis

Avalanche (AVAX) has been correcting inside a descending channel pattern for several days, indicating buying on dips and selling on rallies.

The price turned down from the downtrend line on Jan. 30 and reached the 20-day EMA ($34.29). A drop below the 20-day EMA suggests that the AVAX/USDT pair may remain inside the channel.

Contrarily, if the price turns up and breaks above the downtrend line, it will suggest that bulls are in the driver’s seat. The pair may then start the next leg of the up move to $44 and subsequently to the psychological resistance at $50.

Related: Bitcoin halving hopium: Study reveals 84% of investors expect new all-time highs

Dogecoin price analysis

Dogecoin (DOGE) has been witnessing a tough battle between the bulls and the bears at the 20-day EMA ($0.08).

The bears have repeatedly thwarted attempts by the bulls to clear the 20-day EMA, but a positive sign is that the buyers have not given up much ground. This suggests that the bulls anticipate a move higher toward the downtrend line.

This is an important level to watch out for because a break above it will indicate a short-term trend change. The DOGE/USDT pair may climb toward the $0.10 to $0.11 resistance zone. This positive view will be invalidated if the pair turns down and breaks below the $0.07 support.

Polkadot price analysis

Polkadot (DOT) rose above the 20-day EMA ($6.95) on Jan. 29, but the long wick on the day’s candlestick shows selling at higher levels.

Both moving averages have flattened out, and the RSI is just below the midpoint, indicating that the selling pressure is reducing. The DOT/USDT pair may stay range-bound between $6 and the 50-day SMA ($7.46) for some time.

If the price rebounds off the current level, the bulls will try to push the pair to the 50-day SMA. A break and close above this resistance could propel the pair to $8.50. On the contrary, a break below the neckline could pull the pair to $6. If this level cracks, the pair may slide to $4.80.

Chainlink price analysis

Chainlink (LINK) has been range-bound between $12.85 and $17.32 for many days, indicating a balance between supply and demand.

Usually, in a range, traders buy near the support and sell at the resistance. The break above the moving averages on Jan. 29 opened the doors for a rally to the overhead resistance at $17.32. This level is likely to attract strong selling by the bears.

If the price turns down sharply from $17.32, the LINK/USDT pair may extend its stay inside the range for a few more days.

The bulls will have to drive and sustain the price above $17.32 to signal the start of the next leg of the uptrend. The target objective on the upside is $21.79.