Weekly Price Analysis: – Risky prices will decrease

Cryptos trended lower last week due to risk-oriented sentiments on the recently released Fed meeting notes and economic data. The Fed has expressed caution around inflation, especially given that Trump's policies will begin after his January 20 inauguration. Meanwhile, note the launch of crypto ETFs starting Wednesday, January 8th.

Bitcoin

The price of Bitcoin fell from a high of $102,733 to a low of $91,188 before closing at $94,547 for a negative week.

Technical analysis shows a break above the last low and a push back into the H4 interest zone, which means that even though the price has taken a turn, it is still in overall bullish territory.

Much of this pessimism stems from weak economic prospects. Minutes of the Fed's meeting released on January 8 showed that the Reserve Bank is cautious about inflation as it expects to follow Trump's policies.

As such, the likelihood of further rate cuts has diminished, with some analysts seeing an end to the decline as early as this year. The market reaction reflects this renewed sense of risk-aversion.

Bitcoin's open interest chart shows a decline in open contracts between Wednesday and now. Open interest hit a weekly high of $18.16 billion on the CME on Tuesday, fell to a low of $16.55 billion on Thursday and was flat for the rest of the week.

Meanwhile, Bitcoin ETFs saw outflows following the release of the Fed's meeting minutes on Wednesday. The flow of expenses totaled 718.20 million dollars and the amount of income reached 1.03 billion dollars.

Outlook

Bitcoin price is currently hovering at the bottom of the demand zone. If it breaks below, the price may drop to $85,100, which may act as a support for the fair value gap.

BTC is trading at $91,622 as of press.

Ethereum

Ethereum price also recorded a negative week, falling from a high of $3,744 to $3,157 before closing at $3,236. ETH's price action tested the March 2024 high of $4,089 in early December 2024 but failed to break above and has been making lower lows ever since.

Open interest declined from a Jan. 7 high of $3.50Bn and continued to decline to $2.63Bn as of this publication.

Meanwhile, Ethereum spot ETFs recorded a net outflow of $186.00Mn on a weekly basis following risk-on sentiments in the market.

Outlook

As the price of Ethereum continues to move lower, the next technical level that could provide support is the actual value gap at the $2,893 price level.

ETH is trading at $3,071 as of press.

Solana

Solana's price dropped from a weekly high of $223 to a weekly low of $181 before finally closing at $188 for a total loss of 12.53%. SOL failed to close above the all-time high of $260 and continued to move lower.

Open interest data shows that it fell from $1.89Bn on Binance on January 7 to $1.58Bn on January 10. As of this publication, OI levels have grown to $1.63Bn.

Outlook

The next technical support zone is at the $164 price level. However, even if the order block is support, it is a weak low that can be broken even if the price changes from that zone.

SOL trades for $176 as of publication.

Ripple

Ripple's price has been on a positive note over the past week, closing at $2.55 higher than $2.38 earlier in the week, continuing its upward trend. By zooming in, prices range from $1.90 to $2.90 when the market cools.

Open interest rose on Bitget, the largest trading volume of the XRP derivative, last week, supporting the upward price movement, fueled by positive sentiments from the SEC surrounding the Ripple issue.

Outlook

Ripple's price has been flooded with news surrounding the SEC's lawsuit against its parent company, a case that could be thrown at the expense management.

However, technical analysis shows that XRP is trading at a premium and is expected to pull back. The most likely levels are the fair value gap at $1.75 and the stop order at $1.46.

XRP is trading at $2.37 as of press.