The best cryptocurrency predictions January 2023

The best crypto predictions for January are that the price of Ethereum (ETH) will surpass Bitcoin (BTC), the Bitcoin Dominance Rate (BTCD) will decline, and Solana (SOL) will be one of the biggest losers.

The price of Ethereum will surpass Bitcoin

The ETH/BTC pair broke out of a descending (white) resistance line on July 27 and reached a high of ₿0.086 on September 7. Subsequently, it returned to validate it as support on September 22 (green icon).

Since the validation, Ethereum price has been trading within a symmetrical triangle, which is considered a neutral pattern. However, since it occurs after an up move, the most likely scenario would be a breakout. A breakout that travels the height of the entire triangle would lead to a high near ₿0.094.

There are two other readings that support the possibility of a breakout.

First, ETH price bounced to 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.

Second, the movement within the triangle resembles a full and complex WXY correction (black). In that case, a breakout from the triangle would be the more likely scenario.

However, the daily RSI is still bearish as it failed to break above a descending resistance line and has been rejected by the 50 line.

As a result, whether ETH price breaks out of the triangle or closes below the ₿0.057 area will determine the ETH cryptocurrency forecast for January.

Ethereum Price Top Crypto Prediction
ETH/BTC daily chart. Source: TradingView

The dominance rate of Bitcoin will go down

Bitcoin is heavily influenced by the movements of ETH, as the latter is the largest altcoin based on its market capitalization. However, it also moves with changes in the rest of the cryptocurrency market.

The BTCD price action is currently contained within a parallel ascending channel. Such channels usually contain corrective moves, meaning a failure would be the most likely scenario.

After that, the resistance line of the channel coincides with the 0.382 Fib retracement resistance level, increasing its legitimacy. Hence, the movement within the channel resembles an ABC corrective structure.

Finally, the daily RSI is overbought (red circle). The previous time this happened, a strong move to the downside followed.

If the BTCD breaks out of the channel, it could drop towards its all-time low at 36%. Conversely, a breakout above the channel’s resistance line would indicate that the trend is up.

Therefore, if the movement were to occur, this crypto forecast would be bullish for most of the cryptocurrency market except for Bitcoin. Since the price of Bitcoin is mired in a bear market, it is also possible that the price of BTC will fall while altcoins have fallen by a smaller percentage.

Bitcoin price channel
Bitcoin daily chart. Source: TradingView

The price of SOL will be a huge loser

The price of the SOL token has fallen since reaching an all-time high of $259.90 in November 2021. The downward movement resulted in a low of $9.65 on December 28. During the downtrend, Solana price broke below the long-term support area of ​​$29 area and the short-term $12 support area. The decline has further accelerated in the last 24 hours.

The first decisive bearish sign is that the closest support area is at $4.30, a drop of 58.6% from the current mark. Since there is no support between the current price and the $4.30 support area, it is possible that the SOL price will reach it by the end of January.

The second decisive bearish signal is that the weekly RSI has dropped below the 30 level and is decreasing, without generating a trace of bullish divergence.

As a result, the most likely SOL crypto prediction is a downward movement towards this area. For the long-term trend to be bullish, Solana price would need to reclaim the $29 resistance area.

SOL Weekly price
SOL/USDT weekly chart. Source: TradingView

For BeInCrypto’s latest cryptocurrency market analysis, click here.

Disclaimer

BeInCrypto strives to provide accurate and up-to-date information, but will not be responsible for any missing facts or inaccurate information. You respect and understand that you must use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

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