According to top analysts, the Ethereum (ETH) price is expected to perform better than the Bitcoin (BTC) price in January. Additionally, it is predicted that the Bitcoin Dominance Rate (BTCD) will decrease and that Solana (SOL) will be one of the worst performing cryptocurrencies in the market. These are the top crypto predictions for the month of January.
Ethereum Price Will Outperform Bitcoin
The Ethereum to Bitcoin (ETH/BTC) exchange rate recently broke out from a downward sloping resistance line, reaching a high of 0.086 Bitcoins on September 7th. After this, the ETH price returned to validate the line as support on September 22nd. Since this validation, the Ethereum price has been trading within a symmetrical triangle, which is considered a neutral pattern. However, due to the fact that this pattern follows an upward movement, a breakout from the triangle is the most likely scenario. If this breakout were to occur, the ETH price could reach a high of around 0.094 Bitcoins.
There are two other factors that suggest a breakout may occur. Firstly, the ETH price recently bounced off the 0.5 Fibonacci retracement support level at 0.067 Bitcoins, creating a long lower wick in the process. As long as the ETH price remains above this level, the trend can be considered bullish. Secondly, the movement within the triangle looks like a completed complex W-X-Y correction. If this is the case, a breakout from the triangle would be the most likely outcome.
On the other hand, the daily relative strength index (RSI) is still bearish, as it has failed to break out from a descending resistance line and was rejected by the 50 line. Ultimately, whether the ETH price breaks out from the triangle or falls below the 0.057 Bitcoin area will determine its direction in January.
The Bitcoin Dominance Rate Will Fall
The Bitcoin Dominance Rate (BTCD) is likely to decline in the near future, according to top analysts. The BTCD, which measures the market share of Bitcoin compared to other cryptocurrencies, is influenced by the performance of Ethereum (ETH) and the overall crypto market. Currently, the BTCD is trading within an ascending parallel channel, which is typically a corrective pattern. This suggests that a breakdown from the channel is the most likely outcome.
Furthermore, the resistance line of the channel coincides with the 0.382 Fibonacci retracement resistance level, adding to its legitimacy. The movement within the channel also appears to be an A-B-C corrective structure. Additionally, the daily relative strength index (RSI) is overbought, which has historically been followed by a sharp downward movement.
If the BTCD breaks down from the channel, it could fall towards its all-time low of 36%. On the other hand, if it breaks out above the resistance line of the channel, it would indicate a bullish trend. If this prediction plays out, it could be bullish for most of the crypto market except for Bitcoin, which is currently in a bear market. It is also possible for the Bitcoin price to decrease while other altcoins experience a smaller percentage decline.
SOL Price Will Be a Massive Loser
The Solana (SOL) token price has been declining since reaching an all-time high of $259.90 in November 2021. The downward trend has continued, with the SOL price falling to a low of $9.65 on December 28th. During this decline, the Solana price fell below key support levels at $29 and $12. Over the past 24 hours, the downward momentum has accelerated.
There are two major bearish indicators for the SOL price. Firstly, the closest support level is at $4.30, which is a decline of 58.6% from the current price. This support level is a significant distance away, and there are no other support levels in between. As a result, it is possible that the SOL price could reach this level by the end of January.
Secondly, the weekly relative strength index (RSI) has fallen below 30 and is continuing to decline, without showing any signs of bullish divergence.
Based on these factors, the most likely prediction for the SOL price is a downward movement towards the $4.30 support area. In order for the long-term trend to be considered bullish, the Solana price would need to reclaim the $29 resistance level.
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