Flipster Crypto Weekly (January 31)

BTC has surged back above $104,000, recovering sharply from Monday’s intraday lows of below $98,000. The initial drop followed market jitters over Chinese AI firm DeepSeek’s breakthrough, which challenged US AI firm OpenAI’s dominance and by extension, the U.S., leadership in AI. However, traders quickly dismissed the fears as an overreaction.

By Wednesday, the crypto market had nearly fully recovered, despite the Federal Reserve keeping rates unchanged and offering no clear signs of near-term cuts. Optimism was fueled by the Fed’s affirmation of support for banks serving crypto clients—a stark contrast to the previous administration’s more hostile stance.

Bitcoin (BTC)

Weekly performance: +0.39%

Year-to-date (YTD) performance: +11.76%

Bitcoin (BTC) dropped over 4.5% during Monday’s session, briefly falling below $100,000. However, the decline was short-lived as prices found support at the 50-day moving average, rebounding to close at $102,000. BTC faces key resistance at $106,000— a breakout and close above this level could signal further upside potential.

Ethereum (ETH)

Weekly performance: -3.34%

Year-to-date (YTD) performance: -3.04%

Ethereum (ETH) continues to trade in a downtrend, posting lower highs and lower lows since mid-December 2024. Efforts to break above the 10-day and 21-day moving averages, as well as the downtrend line, have yet to be successful, signaling that overhead supply remains. A decisive close above $3,400 would indicate a change in trend.

Solana (SOL)

Weekly performance: -6.97%

Year-to-date (YTD) performance: +24.73%

After a strong start in early January, Solana (SOL) has struggled to maintain momentum over the past two weeks. The 21-day moving average is currently acting as support, while the $250-$260 range remains a key resistance zone, highlighted by multiple long upper wicks formed during the third week of January, indicating strong selling pressure at these levels.

Jelly-My-Jelly (JELLYJELLY)

Just four hours after launching on Pump.fun, JELLYJELLY skyrocketed over 1,000%, reaching a $250 million market cap. The token, introduced by a Venmo co-founder and early investor in the app, hit a peak of $0.24 before pulling back. As of this writing, it is trading more than 60% below its highs.

Disclaimer: This material is for information purposes only and does not constitute financial advice. Flipster makes no recommendations or guarantees in respect of any digital asset, product, or service. Trading digital assets and digital asset derivatives comes with significant risk of loss due to its high price volatility, and is not suitable for all investors.