Top Altcoins Price Prediction Jan 2024: Buy or Sell
Altcoins Price Prediction Jan 2024: The uncertainty surrounding spot Bitcoin ETFs triggers a massive sell-off in the market but here is why top altcoins like ETH, SOL, and ARB could help diversify crypto portfolios in 2024.
Rising uncertainty around the approval of spot Bitcoin ETFs by the US Securities and Exchange Commission (SEC) fueled increased volatility in the cryptocurrency market on Wednesday. Digital assets across the board saw losses, with Bitcoin (BTC) and top altcoins Ethereum (ETH) and Solana (SOL) leading the decline.
Uncertainty Grips Crypto Market Over Spot Bitcoin ETF Approval
While positive sentiment towards spot Bitcoin ETFs had prevailed in recent months, a report released by Matrixport on Wednesday cast doubt, suggesting an imminent rejection unless key requirements are met. The report also highlights the potential legal challenges the SEC could face if it outrightly rejects all 14 proposals — a move some experts say, it’s unlikely to make considering it lost lawsuits against Ripple and Grayscale.
Matrix on Target projects a January rejection for Bitcoin Spot ETFs by the SEC, cautioning traders to hedge long exposure. With #SEC Chair Gensler’s skepticism towards #crypto, a potential -20% #Bitcoin price drop is anticipated upon #ETF denial, though a positive end-of-2024… pic.twitter.com/IgaMhBJtiP
— Matrixport (@realMatrixport) January 3, 2024
The SEC Chair Gary Gensler said in December that the spot ETF would trigger the crypto market to take off and the industry needed more stringent rules. In the report, researchers at the firm predicted that the earliest approval date lies in Q2 after all requirements have been fulfilled to satisfy the SEC.
In an earlier report, Matrixport said that Bitcoin could rally to $50,000 in January buoyed by “an imminent Spot Bitcoin ETF approval, institutional buying, and factors such as supply shortage and historical trends.” Additionally, there was a high probability of altcoins breaking out and eventually leading to a higher funding rate of more than 66%.
Anticipate a substantial #Bitcoin surge to $50,000 in January, driven by an imminent #BitcoinSpot #ETF approval, institutional buying, and factors such as supply shortage and historical trends, with potential for #altcoin season and a funding rate reaching +66%.
Read the full… pic.twitter.com/sueG5LqENp
— Matrixport (@realMatrixport) January 2, 2024
Like fickle winds shifting a weather vane, analysts have abruptly changed their tune, leaving the fate of spot ETFs shrouded in mist. Can anyone say for sure? Not likely. But one question cuts through the fog: which altcoins might serve as steady anchors if the SEC casts all proposals onto the rocks?
Recommended for you: Top Altcoins To Buy January 3: MKR, SOL, BONK
Ethereum Price Prediction After Hitting $2,400 In 2024
The largest smart contracts token ETH started the year on a positive note, climbing to $2,400 for the first time since May 2022. Despite the bullish outlook across the market, Ethereum price trimmed gains testing support at $2,100 before regaining the ground to $2,228 on Thursday during US early morning hours.
Bulls appear to have calmed the bearish situation, implying that a trend reversal was likely in the short term. Realize that Ether is currently stuck between immediate support provided by the 50-day Exponential Moving Average (in red) at $2,182 and the 20-day EMA (in blue) at $2,270.
If accepted into the ascending channel, Ethereum might stabilize the uptrend and clear the path for another take on resistance at $2,400.
Traders like Captain Faibik believe that the “ETH bull run has already started” and that investors should expect a “new all-time high in Q2 2024.”
$ETH Bull run is already Started ✅
Expecting New All time High in Q2 2024.#Crypto #Ethereum #ETH pic.twitter.com/LRvleHJuLN
— Captain Faibik (@CryptoFaibik) January 4, 2024
Ethereum, unlike many altcoins that tend to plummet during crypto winters, has historically moved in tandem with Bitcoin, thereby minimizing the impact of market downturns. This makes Ether a strong contender for inclusion in a 2024 crypto portfolio.
Solana Price Deep Dive Presents Prime Opportunities
After a remarkable 616% increase in the last year, Solana encountered strong headwinds, suppressing gains since December 25. The decline intensified by the uncertainty around the approval of spot BTC ETFs pushed SOL below the $100 level, with the candle wick stretching to $85.
A reflex rebound occurred swiftly lifting Solana price slightly above $100. However, the tailwind was not strong enough to steady the uptrend which explains the pivotal movement at $100.
A sell signal from the Moving Average Convergence Divergence (MACD) indicator might narrow the chances of an immediate rebound. However, this could be an excellent buy-the-dip opportunity, keeping in mind the bullish outlook Solana has sustained since mid-October.
Arbitrum Price Blasts Off Into Price Discovery
The Ethereum layer-2 scaling provider protocol, Arbitrum emerged as one of the best top altcoin contenders toward the end of the year. Following months of consolidation below $1 and the impact of support at $0.75, ARB climbed higher and higher.
At first, the recovery was lethargic but it gained momentum last week after Arbitrum defeated resistance at $1.25, curving a path to new all-time highs of $2.
Although ARB did not stay above $2 for long, its decline has been controlled compared to other altcoins, which have lost significant value in double digits. ARB trades at $1.87 at the time of writing, breathlessly awaiting a confirmed breakout above $2 to continue with its price discovery.
