Top Crypto Predictions January 2023
The top crypto predictions for January are that the Ethereum (ETH) price will outperform Bitcoin (BTC), the Bitcoin Dominance Rate (BTCD) will fall, and Solana (SOL) will be one of the biggest losers.
Ethereum Price Will Outperform Bitcoin
The ETH/BTC pair broke out from a descending resistance line (white) on July 27 and reached a high of ₿0.086 on Sept. 7. Afterward, it returned to validate it as support on Sept. 22 (green icon).
Since the validation, the Ethereum price has traded inside a symmetrical triangle, considered a neutral pattern. However, since it transpires after an upward movement, a breakout from it would be the most likely scenario. A breakout traveling the entire triangle’s height would lead to a high near ₿0.094.
There are two other readings that support the possibility of a breakout.
Firstly, the ETH price bounced at the 0.5 Fib retracement support level at ₿0.067, creating a long lower wick in the process (green circle). As long as it is trading above the 0.5 Fib retracement support level, the trend can be considered bullish.
Secondly, the movement inside the triangle resembles a completed, complex W-X-Y correction (black). If so, a breakout from the triangle would be the most likely scenario.
However, the daily RSI is still bearish since it failed to break out from a descending resistance line and was rejected by the 50 line.
As a result, whether the ETH price breaks out from the triangle or closes below the ₿0.057 area will determine the ETH crypto prediction for January.
The Bitcoin Dominance Rate Will Fall
The BTCD is heavily affected by the movements of ETH, since the latter is the largest altcoin based on its market cap. However, it also moves by changes in the rest of the crypto market.
The BTCD price action is currently contained inside an ascending parallel channel. Such channels usually contain corrective movements, meaning that a breakdown from it would be the most likely scenario.
Next, the channel’s resistance line coincides with the 0.382 Fib retracement resistance level, increasing its legitimacy. Then, the movement inside the channel resembles an A-B-C corrective structure.
Finally, the daily RSI is overbought (red circle). The previous time this occurred, a sharp downward movement followed.
If the BTCD breaks down from the channel, it could fall toward its all-time low at 36%. Conversely, a breakout above the channel’s resistance line would indicate that the trend is bullish instead.
Therefore, if the movement transpires, this crypto prediction would be bullish for most of the crypto market except for Bitcoin. Since the Bitcoin price is mired in a bear market, it is also possible for the BTC price to fall while altcoins fell by a smaller percentage.
SOL Price Will Be a Massive Loser
The SOL token price has fallen since reaching an all-time high of $259.90 in Nov. 2021. The downward movement led to a low of $9.65 in Dec. 28. During the downward trend, the Solana price fell below the long-term $29 support area and the short-term $12 support area. The decrease further accelerated over the past 24 hours.
The first decisive bearish sign is that the closest support area is at $4.30, a decrease of 58.6% from the current sign. Because there is no support at all between the current price and the $4.30 support area, it would be possible for the SOL price to reach it by the end of January.
The second decisive bearish sign is that the weekly RSI has fallen below 30 and is decreasing, without generating a trace of bullish divergence.
As a result, the most likely SOL crypto prediction is a downward movement toward this area. In order for the long-term trend to be bullish, the Solana price would have to reclaim the $29 resistance area.
For BeInCrypto’s latest crypto market analysis, click here.
BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.