ICP, ARB, STX and MKR flash signals as traders wait for the Bitcoin ETF approval position

Bitcoin (BTC) bulls may remain on the edge of their seats as the BTC exchange-traded fund decision approaches. Analysts expect the United States Securities and Exchange Commission to call on Bitcoin ETF applications on the spot between January 8 and January 10.

Will Bitcoin rise if one or more Bitcoin ETFs are allowed? It is the central question in the investor's mind. Bitcoin prices may rise after ETF adoption, but after the initial excitement, traders may start booking profits by buying the rumor and selling the news.

If the regulators do not approve the Bitcoin ETF position, it can be sold sharply. However, it is unlikely to start a bear market as traders quickly turn their attention to Bitcoin's halving in April, limiting the downside. Additionally, the narrative that a Bitcoin ETF may eventually be approved could bring the bulls to lower levels.

If Bitcoin remains positive, select altcoins may continue to improve. Let's take a look at the top 5 cryptocurrency charts that are likely to outperform in the near future.

Bitcoin price analysis

Bitcoin formed a doji candlestick pattern on January 5th and an intraday candlestick pattern on January 6th, indicating disagreement between bulls and bears.

However, a positive sign is that the price remains in an ascending triangle pattern. This bullish setup will end at the break and close over $44,700. If this happens, the BTC/USDT pair may start the next leg of the uptrend towards the $49,178 pattern target and then towards $52,000.

The triangle support line is the important level to watch on the lower side. If this level gives way, the pair could drop to $40,000 and eventually to $37,980. Buyers can effectively maintain this level.

The 20-exponential moving average is flat, and the relative strength index (RSI) is above the midpoint, indicating a balance between buyers and sellers. Bullish momentum may increase above $44,700. There is minimal resistance at $45,879, but if this level is crossed, the possibility of a rally to $49,178 will increase.

On the downside, a break below the 50-easy moving average suggests that the bulls are weakening. The pair may then fall to the triangle support line. Buyers should expect this level if they want to maintain the bullish pattern.

Internet computer cost analysis

Internet Computer (ICP) has trailed sharply for several days, suggesting that the bulls are rushing to the exit.

The bulls will try to hold the correction at the 20-day EMA ($11.18). If the price rebounds strongly from the 20-day EMA, it suggests that the sentiment remains positive and traders are buying on the dips. The bulls will make another attempt to move the ICP/USDT pair to $14.40 and eventually to $16.

The risk of this assumption is that the RSI has formed a negative divergence, which indicates weak momentum. A break and close below the 20-day EMA indicates that the uptrend may end in the near term.

The moving averages have completed a bearish cross, and the RSI is trading in negative territory, suggesting that the short-term trend is in favor of the bears. If the price falls below $11.70, the pair may drop to $11 and then to $9.36.

The bulls need to push and hold the price above the moving averages to signal that the correction is over. This could start a move higher towards $15 and then towards $16. This level may again attract strong selling by the bears.

Decision value analysis

Arbitrum (ARB) failed to hold above $2, which may have tempted short-term traders to book profits. That brought the price to a high of $1.75.

The ARB/USDT pair may see a fierce battle between buyers and sellers near $1.75. If the price changes significantly from $1.75, it indicates that the bulls have reversed the level to support. That adds to the possibility of a retest of the $2.11 high on Jan. 4. A break above this level could initiate the next leg of the rally to $2.50.

Instead, if the $1.75 level is breached, the pair may drop to the 20-day EMA ($1.59). The bulls will have to defend this level strongly as a slide below it could begin a downward slide to $1.35.

The pair broke the $1.75 support but is facing strong resistance at the 20-EMA. This is a negative sign as it shows that traders are seeing the rally as a selling opportunity. Bears try to strengthen their position by pulling the price below the 50-SMA. If successful, the pair could drop to $1.50.

If buyers want to prevent the decline, they should quickly push the price above the 20-EMA and then press the high resistance at $1.96. That could set up a test of profit resistance at $2.12.

Related: Bitcoin ETFs Solve the Psychology of Unit Bias, Says VanEck Advisor

Stack price analysis

Stacks (STX) rejected resistance above $1.78 on January 5, but the rally was short-lived.

The price has risen above the 20-day EMA ($1.47) on January 6, indicating that bulls will continue to buy dips. The bulls have pushed the price to $1.78 resistance, where they may face strong selling by the bears. If buyers clear the barrier above, the STX/USDT pair could move to $2.20 and then to $2.50.

Conversely, if the price declines significantly from the current level, the pair may oscillate between the 20-day EMA and $1.78 for some time. To initiate a deep correction to $1.20, the bears need to drop the price below the 20-day EMA.

The pair reached the high resistance level of $1.78, which remains an important short-term level to maintain. If buyers cross this barrier, it signals the start of the next uptrend. The pair can start around $2 a trip.

On the contrary, if the price drops significantly from $1.78, it suggests that the bears will continue to maintain the level. The pair may move down to the moving averages and then to $1.36. A breakout from this level could keep the pair in the $1.36 to $1.78 range for some time.

Producer price analysis

Maker (MKR) pulled back higher, but a slight positive is that the bulls have now allowed the price to bounce back below the $1,651 breakout.

The 20-day EMA ($1,615) is trending higher, and the RSI is near the overbought zone, indicating upside for buyers. If the retracement of $1,651 holds, it will indicate that the bulls have reversed the level to support. The MKR/USDT pair may test the upward resistance rally at $2,000.

The 20-day EMA is a crucial support to watch out for on the downside. A break and close below this level could drag the pair to the 50-day SMA ($1,483).

The bulls bought a dip to the uptrend line on the 4-hour chart, indicating strong buying at lower levels. The bulls have pushed the price above the 20-EMA and are trying to extend the recovery above the $1,825 resistance. If you can do that, the pair can go up to $1,900 and then $2,000.

The bears need to sink the price below the high line to weaken the bulls. If the $1,651 level is broken, the sell-off could accelerate. The pair could dive to $1,500.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.