Crypto Price Analysis 1-14 BITCOIN: BTC, ETHEREUM: ETH, SOLANA: SOL, RIPPLE: XRP, ARBITRUM: ARB, FILECOIN: FIL, INJECTIVE: INJ

On Monday, Bitcoin (BTC) saw a temporary dip below $90,000, causing concern among investors due to market turbulence. However, it swiftly regained its footing, reaching $92,500 before ascending further to its current price of $95,400. Despite the decline, Bitcoin has managed a slight increase of 1.01% in the past day.

In summary, the value of various cryptocurrencies has shown a mixed picture over the last 24 hours and a week. Ethereum (ETH), for instance, has dropped by almost 2% in the past day and around 14% over the past week. On the flip side, Solana (SOL), Ripple (XRP), Dogecoin (DOGE), Cardano (ADA), Sui, and Toncoin (TON) have experienced an increase in their prices. Other cryptocurrencies like Tron (TRX), Stellar (XLM), Uniswap (UNI), and Litecoin (LTC) have also seen significant decreases. The total market capitalization of the crypto market currently stands at approximately $3.28 trillion, showing a minimal decline.

Bitcoin (BTC) Drop Sparks Market Crash Fears

A sudden dip in Bitcoin (BTC) prices below $91,000 ignited widespread concern in the market about an approaching price collapse. Bitcoin has been experiencing a slump since it hit its post-election high. This decline occurred even though Trump had pledged a supportive administration for cryptocurrencies and emphasized Bitcoin as a key aspect of his policy. Despite these assurances and initial enthusiasm, analysts remain apprehensive about the possibility of a price collapse. Alex Kuptsikevich, FxPro’s Chief Market Analyst, expressed this concern.

2022’s beginning hasn’t been smooth sailing for the cryptocurrency market. Should the bearish trend continue, a potential target lies around the $88,000 region. In a pessimistic outlook, Bitcoin could experience a swift correction down to $74,000.

The cryptocurrency market, with Bitcoin leading the way, has found it challenging to gain traction since its peak in December, due to a series of encouraging economic data and announcements suggesting that the Federal Reserve may not lower interest rates as much this year.

In a 24-hour period, the market dropped more than 2% and fell back to approximately $3.22 trillion, which is the lowest point it has been since late November. The optimistic beginning of the year didn’t last. Now, with some apprehension, we observe this latest dip below the $3.20 trillion mark, making it the eighth or so time this has happened. Furthermore, the momentum that was expected to push prices up last week never materialized, instead attracting sellers.

Litecoin (LTC) Plunges After X Account Hack

1) Litecoin (LTC) declined by 4% due to ongoing uncertainty following a recent security breach. The attack took place when unauthorized individuals exploited Litecoin’s official X account, spreading misinformation about a fake LTC token. Claiming the token was part of a Solana-supported project, the hackers aimed to deceive investors. Although the network itself remained secure, the incident has intensified negative market sentiment towards Litecoin.

Currently, Cardano (ADA) and SUI are experiencing a decrease in value by double digits, as traders cash out following last week’s surge. This decline suggests that traders are exercising caution, given the prevailing bearish market atmosphere ahead of the upcoming US CPI data release.

Institutional Crypto OTC Volumes Doubled in 2024

2024 witnessed a significant surge of 106% in Institutional Over-The-Counter (OTC) trading volumes, primarily fueled by Donald Trump’s US presidential victory and a heightened interest in spot crypto Exchange Traded Funds (ETFs). The last quarter experienced the most considerable increase, with Bitcoin (BTC), Ethereum (ETH), and stablecoin trading volumes soaring 80%, 187%, and 191% compared to the previous year.

Despite regulatory clarity not yet being fully established, the supportive attitude towards cryptocurrency by the Trump administration played a significant role in driving up crypto spot trading volumes to record highs seen in Q4 of 2024.

As a crypto investor, I’ve noticed an impressive 110% year-on-year surge in the second quarter, a rise Finery Markets attributes to the debut of spot Bitcoin ETFs. This growth in institutional over-the-counter (OTC) crypto volumes can be attributed to traditional finance leaders moving away from skepticism and gradually adopting a more neutral stance towards cryptocurrencies.

MicroStrategy Purchases Additional Bitcoin

According to a filing with the Securities and Exchange Commission (SEC), MicroStrategy has just purchased an additional 2,530 Bitcoins for approximately $243 million, bringing the average price of each Bitcoin in their reserves to about $95,972. This latest purchase is the company’s tenth consecutive weekly acquisition of Bitcoin, indicating a consistent strategy to build its Bitcoin holdings. The tech company aims to raise around $42 billion by 2027 through offering convertible debt and selling additional stocks, which it intends to use for further Bitcoin purchases.

On the other hand, opinions among analysts regarding MicroStrategy’s Bitcoin acquisition approach vary. Some have flagged potential issues with the longevity of its debt and equity-funded buyouts, expressing concerns about their long-term sustainability. Financial analyst Jacob King has voiced similar worries, pointing out the potential risks involved.

The business strategy of MicroStrategy revolves around a self-reinforcing mechanism: they raise funds through debt or stock sales to purchase Bitcoin, thereby potentially increasing its value. This uptick in Bitcoin’s price raises MicroStrategy’s market capitalization, boosts its index weight, and brings in more unsuspecting investors. With a higher valuation, they can issue additional stocks to buy even more Bitcoin. However, this cycle depends on the continued rise of Bitcoin. If Bitcoin plateaus or experiences a fall (which might happen), the mechanism breaks down. This is an unsustainable model that closely resembles a Ponzi scheme.

Bitcoin (BTC) Price Analysis

From my perspective as an analyst, even though Bitcoin (BTC) dipped below $90,000 momentarily on Monday, its overall outlook continues to be optimistic. The recent fluctuations in BTC’s price are primarily attributed to a stronger US dollar, which is reinforced by the Federal Reserve’s hawkish stance and apprehensions about tariffs. However, despite the macroeconomic hurdles, Grayscale’s research director, Zach Pandl, posits that the fundamental outlook for BTC remains structurally bullish. Pandl suggests that these recent price movements might momentarily slow down BTC, but he anticipates a surge in market momentum following the upcoming presidential inauguration.

2025 looks promising for Bitcoin (BTC) according to many analysts, with Steno Research anticipating record-breaking highs due to a positive regulatory climate encouraging increased institutional investment. However, BTC experienced some resistance on Monday, as indicated by the price chart, where it struggled to gain traction after slipping below both the 20 and 50-day moving averages (SMAs). Interestingly, BTC showed strength at the beginning of the new year, surpassing these SMAs on Friday, January 3. The price saw minor growth over the weekend, ending at approximately $98,309. Notably, BTC also started the previous week with a bullish trend, climbing almost 4% to exceed $100,000 and settling at $102,228.

On Tuesday, the market’s outlook shifted as Bitcoin dipped beneath its 50-day Simple Moving Average (SMA) following a drop of more than 5%, ending at $97,019. The price slid below the 20-day SMA on Wednesday, reaching an intra-day low of $92,546 before rebounding to close at $95,121, losing nearly 2%. Sellers continued their dominance on Thursday as the price dropped by 2.53% to $92,710. However, buyers resurfaced in the market on Friday, causing Bitcoin to surge over 2%, though it failed to exceed the 20-day SMA and finally settled at $94,818. Over the weekend, Bitcoin saw a minor decrease on Saturday and a minor increase on Sunday, ending the period at $94,585. Tragically, Bitcoin plummeted on Monday, slipping below $90,000 as it reached an intra-day low of $89,397.

Initially, it dropped to a level of $90,000 but managed to bounce back, reaching $94,492. Now in the ongoing session, Bitcoin is slightly rising as traders aim to push it above $95,000 and potentially reach $100,000.

Ethereum (ETH) Price Analysis

On Monday, there was a temporary dip in Ethereum (ETH) prices as markets experienced a downturn due to concerns about a potential price crash. ETH had been on an upward trajectory since the beginning of the new year, surpassing its 20 and 50-day Simple Moving Averages (SMAs). This movement allowed it to break through the significant $3,500 level on Friday, reaching a high of $3,657 on Saturday. However, there was a slight drop on Sunday, causing ETH to close the weekend at $3,634. On Monday, ETH showed signs of recovery with a 1.46% increase to reach $3,687. Despite a promising start to the week, ETH experienced a sharp decline on Tuesday, falling more than 8%, dropping below its 20 and 50-day SMAs and settling at $3,381. The price dipped further to an intraday low of $3,217 on Wednesday but eventually stabilized at $3,327.

On Thursday, sellers maintained control over Ether (ETH), causing it to dip by about 3% to $3,220. Buyers re-entered the market on Friday, resulting in a 1.45% increase for ETH, which moved up to $3,267. The weekend started with ETH showing volatility as both buyers and sellers fought for dominance. Eventually, buyers took control, causing ETH to inch up slightly to $3,283. However, it dropped again on Sunday to close the weekend at $3,266. On Monday, ETH plummeted significantly, hitting a low of $2,930 and dipping below the 200-day Simple Moving Average (SMA). It then recovered to reclaim $3,000 and settle at $3,137, marking a nearly 4% drop. In the current session, ETH is up by 1.34%, trading around $3,179 as buyers try to recoup losses and push the price towards $3,500.

Solana (SOL) Price Analysis

On Monday, Solana (SOL) reached a peak of $223 as it tried to surpass its 50-day Simple Moving Average (SMA). Yet, with sellers being active at this level, the coin lost momentum and plunged by 7% to $202 on Tuesday. The price kept dipping on Wednesday, dropping beneath the 20-day SMA to a low of $188 before rebounding and ending the day at $197, still above the 20-day SMA. The selling pressure intensified on Thursday as SOL dropped below the 20-day SMA by more than 6%, settling at $185. However, buyers came back into the market on Friday, pushing SOL up to a high of $193 before it closed at $187.

Over the past weekend, Solana (SOL) witnessed significant fluctuations due to a power struggle between purchasers and vendors trying to assert dominance. By Saturday and Sunday, buyers managed to take charge, causing SOL to inch up slightly, ending the weekend at approximately $188. The markets turned bearish on Monday as SOL plummeted to a daily low of $169, briefly dipping below crucial support levels and its 200-day Simple Moving Average (SMA). However, it bounced back from this point, reclaiming the $180 level and settling at $182, recording a near 3% decrease. Currently, SOL is up by 2.33%, with buyers aiming to propel it above the 20-day SMA and the $200 mark. For this to occur, SOL must initially surpass the resistance at $190.

Ripple (XRP) Price Analysis

As I, the researcher, analyze the cryptocurrency market trends, I find an intriguing anomaly with Ripple (XRP). While most coins are following a downward trajectory, XRP is boldly striving to surge towards the $3 mark. This ambition stems from the support it found at its 20-day Simple Moving Average (SMA), which it first crossed on January 1st, reaching an intraday high of $2.47 by Friday (December 3). However, the momentum waned over the weekend, with a 1.35% dip on Saturday and a 0.90% decrease on Sunday, leaving XRP at $2.39. On Monday, it managed to inch up by 0.92%, but then plummeted more than 6% on Tuesday, settling at $2.27. However, the resilient nature of XRP was evident on Wednesday as it rebounded due to the 20-day SMA serving as a dynamic support level, gaining 4.48% to reach $2.37. Unfortunately, it dipped again by more than 4% on Thursday, bringing it back down to $2.27.

On Friday, XRP saw a rise of 3%, reaching $2.34. On Saturday, bullish sentiment grew significantly as XRP jumped over 10% and broke through the resistance level at $2.50, settling at $2.57. However, it lost some momentum on Sunday, dropping nearly 3% to close the weekend at $2.50. On Monday, early selling pressure drove XRP down to an intraday low of $2.33, but it bounced back slightly to record a 1% increase and end the day at $2.52. Currently, buyers are attempting to push XRP towards potential targets of $2.80 and $3 in the ongoing session.

Arbitrum (ARB) Price Analysis

After hitting an intraday peak of $0.956, Arbitrum (ARB) has been trending downwards. This decline was evident on Tuesday when ARB dropped approximately 11%, falling beneath the 50-day Simple Moving Average (SMA) and settling at $0.82. The following day, Wednesday, saw ARB break a significant support level, dropping more than 4% below the 20-day SMA and ending the day at $0.787. The selling pressure grew even stronger on Thursday as ARB plummeted nearly 6% to reach $0.743.

On Friday, buyers made an effort to recover, pushing ARB to a peak of $0.774. However, it ran out of steam after hitting this high and closed at $0.747, recording only a minimal gain. Pessimism resurfaced over the weekend as ARB declined by 0.55% on Saturday and almost 2% on Sunday, ending at $0.730. The new week started with ARB continuing to decline, falling nearly 4% to $0.702. Currently, ARB is seeing a slight uptick of more than 1%, bouncing back from the $0.70 support level.

Filecoin (FIL) Price Analysis

On Monday, Filecoin (FIL) dipped below a significant support point, as its downward trend persisted. Following a nearly 11% decline on Tuesday, FIL fell below its 50-day Simple Moving Average (SMA) and settled at $5.35. The price further dropped by around 4% on Wednesday, falling beneath the 20-day SMA and settling at $5.11. However, on Thursday, there was an attempt to recover, but FIL failed to surpass the 20-day SMA. Ultimately, sellers regained control and pushed the price down by 1.40% to $5.04. On Friday, FIL saw a rise of over 3%, reaching $5.21. Yet, despite this positive movement, FIL was unable to go past its 20-day SMA.

Over the weekend, traders resumed their activities with a minor decrease in FIL’s value on both Saturday and Sunday, ending at $5.08. The downward trend became more pronounced on Monday when FIL fell below $5 to close at $4.92 after briefly touching $4.63. However, the current trading day has seen FIL rally nearly 3%, aiming to maintain its price above $5. At present, FIL is being traded around $5.05.

Injective (INJ) Price Analysis

Since last week, Injective (INJ) has maintained a bearish trend, experiencing a steep decline of approximately 8% on Tuesday after it failed to surpass its 50-day Simple Moving Average (SMA). The sellers held dominance on Wednesday as INJ fell by 8.11%, dipping below both its 20 and 200-day SMAs, ending the day at $21.88. Further losses were observed on Thursday, with a near 4% drop to $21.07. However, a slight recovery occurred on Friday as INJ rose by 2.40%, reaching $21.58. Unfortunately, it was unable to break past the moving averages and resumed its bearish trend on Saturday, shedding more than 1% to close at $21.34.

On Sunday, the value of INJ fell further, dipping below $21 after experiencing a decrease of 2.45%, closing at $20.82. On Monday, the price took a steep dive, reaching an intraday low of $18.56 due to increased selling pressure. However, INJ managed to rebound from that level and ended the day at $20.10, resulting in a 3.44% drop overall. In the current trading session, INJ is up more than 3%, with investors aiming to push its price towards the resistance point of $22.

2025-01-14 13:42