As investors scratch their heads, wondering whether it is a good time to buy Bitcoin and crypto or look elsewhere for opportunities, some top altcoins are standing out, and promising outsized returns after the Securities and Exchange Commission (SEC) approves spot BTC exchange-traded funds (ETFs) in the US.
Bitcoin Price To Lead ETF-Driven Rally
Bitcoin showed substantial strength on Monday, briefly breaking above $47,000. Altcoins like Ethereum, Solana, Lido, and more moved in tandem with BTC but the crypto rally had cooled off on Tuesday.
Nodding to Bitcoin spot ETFs is believed to be one of the major events expected in 2024. These ETFs would include participants from the traditional finance sector, who for a long time, have stayed away from Bitcoin and crypto amid fears of volatility, manipulation, and complex custody requirements.
The anticipated influx of capital into the market has the potential to drive demand for BTC to the roof, thus creating an environment suitable for a commendable breakout.
While the ETF could directly impact the price of Bitcoin, enhanced investor sentiment would be a catalyst for altcoins like Solana (SOL), Chainlink (LINK), and SEI to rally tremendously.
Besides, the crypto market has generally sustained an uptrend since mid-October meaning that with a slight boost, a bull run could be born.
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Top Altcoin Chainlink Confirms Breakout
After successfully facing a break or make moment at the recent support — $13, Chainlink price climbed to $14.4 on Monday. Although the move was solid, its encounter with the falling wedge trendline resistance saw LINK rolling back to $13.5 at the time of writing.
Investors piquing interest in Chainlink could aim for dollar-cost average (DCA) ahead of an anticipated wedge breakout. Despite the bullish expectations, the Oracle token might drop further to retest $13.5 before reaching out for the wedge breakout.
This short-term bearish analysis aligns with an incoming sell signal from the Moving Average Convergence Divergence (MACD) indicator. In that case, patient traders might choose to wait until Chainlink either breaks above the wedge or retests $13.5 support before taking action.
Chainlink price chart | Tradingview
Post-pattern breakout, expect a volume surge to validate the trend reversal. Resistance lurks at $14, but a clean break opens the door for gains targeting $20+ highs. Beyond this, FOMO could fuel a further rally, potentially closing the gap to $30.
Solana Price Holding Key Support Is An Opportunity
Solana is struggling to establish itself above support at $100 after scaling the heights from the previous buyer congestion level of $85.
Backing the current bullish outlook is a buy signal from the MACD indicator and the 50 Exponential Moving Average (EMA) which if respected as support could give bulls another opportunity to push to $120 this week.
Solana price chart | Tradingview
The potential escape from the descending channel can boost SOL price to higher levels as the tailwind intensifies due to FOMO. Resistance anticipated at $110 could bring forth concerns about the uptrend’s sustainably. However, should Solana price successfully test this hurdle, bulls could carve a new path for gains above the December peak at $125.
Can Dips In Sei Price Turn Profitable?
Sei bulls battle bears after a brutal reversal from ATH ($0.87 on Jan 3) to $0.58. Currently, price is trapped in a descending channel, ping-ponging between the channel’s lower and upper boundaries.
The Relative Strength Index (RSI) reveals an intense bearish theory is gaining momentum as it drops below the midline in the neutral area. For an immediate rebound, Sei must hold above the 50 EMA close to the channel’s middle boundary support. This will offer bulls a chance to collect more liquidity and with subsequent green candles, more traders would jump on board anticipating another breakout to the ATM or further up above $1.
Sei price chart | Tradingview
Below the channel’s middle boundary, Sei could completely invalidate the potential trend reversal. Investors may sell more of the token to protect their capital or seek alternative investment vehicles, considering the likely approval of the spot Bitcoin ETF.
Based on the Fibonacci levels, Sei could be in the initial stages of a trend correction. In other words, Sei might slide to the 0.618 Fibo ratio slightly below the 200 EMA before giving bulls a chance to control the narrative. Nevertheless, dips could prove profitable as long as investors identify key entry points with the DCA strategy.
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