January is halfway through, yet Bitcoin (BTC) hasn’t breached the $98,000 resistance. Recently, analysts believe that breaking through this resistance is possible with $94,000 holding as support. However, BTC has already slid below $96,000, and as the weekend approaches with low trading volumes, the outcome remains uncertain. Interest from the ETF sector has been robust for two days, and as today’s figures become clear, the situation will become more defined.
BTC Supply Shock and Solana (SOL)
Swissblock highlights that despite exits by long-term investors, whales and short-term buyers are decisively increasing their appetite. The interest in ETFs is noticeable, and an on-chain analysis platform sharing the graph below notes: “While long-term investors are showing moderate exits, whales and short-term investors are persistently buying. This demand is drawing exchange liquidity towards institutional custody services. This trend is underscored by over $1.7 billion entering ETFs since January 12.” Specifically, on January 14, there was a significant inflow of $800 million, with BlackRock’s IBIT representing $648 million of this total. Institutions are effectively “drying up” the market, witnessing a classic Supply Shock pushing BTC above $97,000.
The issue arises from substantial ETF exits being followed by such appetizing levels of entries. Depending on whether this continues, we might see more substantial actions in this channel.
The appetite for altcoins hasn’t fully returned, and as of the article’s preparation, BTC had retreated roughly 1.5%, causing notable 5% losses in several altcoins. On-Chain Mind shared a market update specifically focused on Solana, stating that $146 forms a structural resistance and that a breakout should be anticipated for any trend reversal.
“Rejection will keep SOL within range limits, increasing the risk of another fall towards significant support at $123.” – On-Chain Mind
XRP Coin Predictions
If XRP Coin loses support at $2.08, it might indicate a broader loss of appetite for altcoins. Examining the graph confirms this observation. With BTC not continuing its upward momentum, investors, now believing this attempt might become another short opportunity like the previous ones, remain cautious.
XRP Coin’s performance in the ETF channel has been promising with daily inflows exceeding $10 million over the last three days. While not as substantial as the outflows on January 7, today’s decline could result in some outflow. A loss at $2.02 might lead to a further drop to $1.98 and $1.9.