Best Crypto Predictions January 2023

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The top crypto predictions for January are that Ethereum (ETH) price will outperform Bitcoin (BTC), Bitcoin (BTCD) dominance rate will fall, and Solana (SOL) will be one of the biggest losers.

Ethereum price will outperform Bitcoin

The ETH/BTC pair broke out of a descending resistance line (white) 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 validation, Ethereum price has been trading inside a symmetrical triangle, which is considered a neutral pattern. However, since it occurs after an upward move, a breakout of it would be the most likely scenario. A breakout across the full height of the triangle would lead to a top near 0.094.

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

First, ETH price bounced off the 0.5-0.067 Fib retracement support level, 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 inside the triangle looks like a complex and complete WXY correction (black). If so, a breakout of the triangle would be the most likely scenario.

However, the daily RSI is still bearish as it failed to break out of a descending resistance line and was rejected by the 50 line.

Accordingly, whether ETH price breaks out of the triangle or closes below the 0.057 area will determine the ETH crypto prediction for January.

ETH/BTC daily chart. Source: TradingViewBitcoin Dominance Rate Will Fall

BTCD is strongly affected by the movements of ETH, since the latter is the largest altcoin based on its market capitalization. However, it also evolves according to changes in the rest of the crypto market.

BTCD price action is currently contained within an ascending parallel channel. These channels usually contain corrective moves, which means that a breakdown of this one would be the most likely scenario.

Then, the resistance line of the channel coincides with the 0.382 Fib retracement resistance level, increasing its legitimacy. Then the movement inside the channel looks like an ABC corrective pattern.

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

If BTCD breaks out of the channel, it could fall to its all-time low of 36%. Conversely, a break above the channel’s resistance line would rather indicate that the trend is bullish.

Therefore, if the move materializes, this crypto prediction would be bullish for most of the crypto market except for Bitcoin. Since the price of Bitcoin is mired in a bear market, it is also possible that the price of BTC may decline while altcoins fall by a smaller percentage.

BTCD daily chart. Source: TradingViewSOL price will be a massive loser

The price of the SOL token has been falling since hitting an all-time high of $259.90 in November 2021. The downward movement led to a low of $9.65 on December 28. During the downtrend, Solana price broke below the $29 long-term support. zone and the $12 short-term support zone. The decline has accelerated further in the past 24 hours.

The first decisive bearish sign is that the nearest support zone is at $4.30, which is a 58.6% drop from the current sign. Since there is no support between the current price and the $4.30 support zone, 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 broken below 30 and is falling, without generating a trace of bullish divergence.

As a result, the most likely SOL cipher prediction is a downward move towards this domain. For the long-term trend to be bullish, Solana price would need to recover the $29 resistance zone.

SOL/USDT weekly chart. Source: Trading View

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Disclaimer

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

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