Bitcoin's upward trend continued yesterday, with its price hitting a new local high of $47,200 on Monday. Here’s a detailed market analysis of Bitcoin (BTC) and Solana (SOL) for Tuesday, January 9.
Bitcoin (BTC)
After an 8% surge yesterday, BTC prices have somewhat steadied. Currently, the cryptocurrency is oscillating within a sideways range, between support at $46,300-$46,500 and resistance at $46,950-$47,200.
The continuation of this upward trend and reaching new highs seems to be the more likely scenario. The upcoming targets for buyers might be around $47,600 and $48,100.
However, the potential for a market correction remains, particularly with impending key financial updates like the US inflation rates and the possible approval of a Bitcoin ETF this week.
In a downward scenario, BTC might revisit the support levels at $45,800-$46,100. Falling below this range could signal a deeper correction, possibly aiming for the psychological level of $40,000.
BTC chart on the M5 timeframe
Solana (SOL)
Our previous analysis of Solana has proven to be quite accurate. The asset's price dipped into the $79-$86 support zone before buyers intervened, driving the price back towards $100.
SOL is now contesting a resistance zone between $101.6-$108. Breaching this barrier could lead to encounters with sell orders in the $112.3-$117 range. Beyond this, the yearly high of $126 looms, potentially reachable if Bitcoin maintains its position above $45,000, considering the strong correlation between Bitcoin and altcoins.
Should the market turn bearish, SOL could see its price fall back to the key buying zones at $79.1-$86, $73.1, and $61.8-$68.9.
SOL chart on the H2 timeframe
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Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. Before opening any deals, we strongly advise conducting your own research and analysis.
Abbreviations
TF (Timeframe) — a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) — the price movement between support and resistance levels, without going beyond the given range.
К — simplified designation of one thousand dollars of the asset price (for example, 23.4K – $23,400).
Gray range on the chart — a support zone.
Red range on the chart — a resistance zone.
Correlation — the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.
Initial materials
This analysis was informed by the following educational materials and articles from GN Crypto:
