Bitcoin has continued to face resistance near the $107,000 level. However, the good news is the $100,000 major support hasn’t collapsed despite massive sell-offs on Friday following an announcement from the White House that the US President would introduce tariffs on imports from Canada, Mexico, and China.
One of the primary reasons Bitcoin has not dropped below $100k is that institutional adoption is growing. According to Bloomberg’s top ETF analyst Eric Balchunas, institutional investors have poured over $4 billion into Bitcoin spot ETFs since the start of the year.
As institutions continue to buy, retail investors, on the other hand, have been taking profits. Data from CryptoQuant shows that these investors transferred over 6,000 BTC to crypto exchange Binance in January. In most cases, when holders deposit Bitcoin into exchanges, it signals their intentions to sell.
BTC rallied 12% last month and some analysts expect the coin to surge further in February, arguing that this month has been good for crypto in the past four years. However, chief analyst at Bitget Research, Ryan Lee, says a Bitcoin rally in February will depend on the labor market report to be released on February 7th.
According to him, a weakening market labor data will likely enhance the chances of interest rate cuts, thus boosting investor sentiment on Bitcoin, while strong data would minimize the probability of rate cuts, triggering crypto price corrections.
With that said, can increased institutional demand push Bitcoin above the $109,556 resistance to create a new all-time high, or will the bears pull the coin below the critical support at $100k? And if a breakout above $109,556 or below $100,000 happens, which levels must traders keep an eye on? Let’s find out by studying the charts.
Bitcoin Price Analysis
After hitting $106,173 on January 31st, Bitcoin has reversed to $102,615 as of this writing. If the sellers drag it below the 20-day Exponential Moving Average of $102,187, a plunge to the 50-day Simple Moving Average of $99,312 could occur. Even worse, BTC might trend toward the support at $90,248 if the bulls fail to apply pressure at $95,704.
From a bullish point of view, a breakout at $109,556 would mean that the buyers have taken full control of the Bitcoin market. As such, the prospects of a rally to $118,100 and later to $125,690 will rise.
Ethereum Price Analysis
ETH has defied the marketwide downtrend in the past 24 hours, surging 3.8%. However, it is still struggling to stay above the resistance line of the ascending triangle pattern, suggesting that short-term traders are taking profits.
The first sign that selling pressure has reduced will be when Ethereum crosses and stays above the 50-day Simple Moving Average of $3,412. In that case, we may see a rally to $3,523 and then to $3,725. Alternatively, the second-biggest crypto asset by market cap could plummet below $3,000.89 and hit $2,900 if the 20-day Exponential Moving Average of $3,284 gets violated.
XRP Price Analysis
More ETF issuers submitted their filings for XRP exchange-traded funds to the US Securities and Exchange Commission in January. This has helped the Ripple-issued token to remain above the $3.054 critical resistance. If it continues trading above this level for longer, it could improve its chances of climbing to its all-time high of $3.403 and subsequently to $4.00.
On the other hand, the bears could pull XRP to the 50-day Simple Moving Average of $2.613 if the bulls don’t guard the 20-day Exponential Moving Average of $2.968.
BNB Price Analysis
BNB has come under selling pressure near the 20-day Exponential Moving Average of $686.93 this week, signaling bears’ intentions to maintain the token at lower prices, thus enhancing their chances of causing a massive downtrend toward the $634.82 vital support.
However, if the Binance Coin climbs and remains above $686.93, the 50-day Simple Moving Average of $696.04 could collapse, making room for a surge to the $745.18 resistance.
