Blockchain Index

 Bitcoin ETF Outflows Surge as BTC Drops to $93K

Bitcoin ETFs saw $570M in outflows on Jan. 8, as $BTC fell below the $100K psychological mark, signaling cautious sentiment. The Fidelity Wise Origin Fund recorded its largest-ever single-day outflow of $258.7M, reflecting profit-taking ahead of economic updates. Despite outflows, whales accumulated 34K BTC, signaling long-term confidence. Analysts project a potential dip to $90K before rebounding toward $126K on pro-crypto policies and ETF growth. The Fear & Greed Index at 69 shows optimism remains despite volatility. Bitcoin dominance rose 2% last week, reinforcing its resilience as altcoins faltered.

Ethereum Faces Bearish Reversal Below $3,600

Ethereum $ETH sruggled to reclaim $3,600, closing the week at $3,280, down 8%. Support near $3,000 is fragile, with a possible dip to $2,850 if sellers dominate. The failed breakout above $4,000 hints at near-term consolidation, but strong fundamentals in DeFi provide a bullish backdrop. A rebound above $3,576 resistance could restore momentum, targeting $4,094 in Q1 2025. Ethereum’s long-term outlook remains robust, supported by growing institutional adoption and developer activity. Short-term traders should remain cautious but anticipate higher volatility ahead.

Cardano Struggles Amid Declining Engagement

Cardano $ADA dropped 9% this week, trading at $0.9860, as daily active addresses plummeted to 38.2K and TVL fell 31.5% to $485M. Major DeFi protocols like LenFi and Minswap saw sharp declines, fueling bearish sentiment. Analysts point to $0.80 support as critical, while a move above $1.18 resistance is needed to regain bullish momentum. Long-term potential remains intact if Cardano can rebuild its ecosystem engagement. Traders eyeing ADA should be cautious of short-term dips but watch for signs of stabilization near key levels.

Solana ETF Anticipation: Game-Changer for $SOL?

Solana continues to face profit-taking, trading at $189.58, with ETF decisions looming. SEC rulings on Solana ETFs, expected by Jan. 23, could bring institutional inflows and reshape $SOL’s market dynamics. Resistance at $225 remains the immediate hurdle, with $175 support critical to maintaining long-term uptrends. Pro-crypto narratives, including Trump’s presidency, support Solana’s bullish trajectory into 2025. ETF approval could unlock billions, driving $SOL back to its ATH levels. Solana’s fundamentals remain robust, making it a critical player in the altcoin ecosystem.

Understanding Support and Resistance Levels for Trading

Support and resistance levels are crucial for crypto trading. Support is where buyers historically step in, preventing further declines, while resistance is where sellers dominate, capping upward movement. Calculate these levels using Fibonacci retracements, recent highs/lows, or psychological thresholds. For instance, if $SOL = fell from $225 to $175, the 50% retracement would be $200 ([(225-175) ÷ 2] + $175). Use these levels to plan entries or exits—buy at support and sell at resistance. Traders should watch for volume spikes and candlestick confirmations near these levels to validate price action.