So far, the US equity markets have had a strong year. The Nasdaq Composite has seen an impressive rise of 31.7%, its most successful first half since 1983. Similarly, the S&P 500 Index (SPX) has gained 15.9%, its best first half since 2019, indicating that riskier assets are still sought-after.
In the cryptocurrency markets, Bitcoin (BTC) has been a catalyst for the recovery in Q2 2023, with its price increasing by 20%. This is an encouraging sign, as it seems that hodlers have not been enticed to sell their coins, as evidenced by Glassnode’s Illiquid Supply Change metric being close to its cycle highs, which suggests that hodlers are confident in their holdings.
Typically, the leader in a bear market is the first to show signs of recovery. If the rally persists, traders’ sentiment will become more optimistic and they will search for additional buying chances. Following Bitcoin’s rally, altcoins have started to display signs of life. Should the trend stay, several altcoins could experience a surge in the upcoming weeks.
Will the U.S. stock markets keep going up? Could Bitcoin and other major cryptocurrencies keep rebounding? Let’s take a look at the charts to find out.
S&P 500 Index price analysis
The S&P 500 Index on June 26 bounced away from the breakout level of 4,325, suggesting that the bulls have turned this level into a support.
Buyers’ buying activity increased, pushing the index beyond the 4,448 resistance. This suggests the uptrend is back on track. Bears may present a formidable barrier at 4,500, yet it is improbable that this level will hold. If the index surpasses this resistance, the rally could extend to 4,650.
If bulls desire to halt the upward movement, they must rapidly lower the price beneath 4,325. If they do, the selling could gain speed and the index could drop to 4,200.
U.S. dollar index price analysis
On June 28, the bulls drove the U.S. dollar index (DXY) higher than the 20-day exponential moving average (103), suggesting strength.
On June 30, the bears attempted to reduce the cost below the moving averages, but the bulls refused to yield. This implies that buyers are being drawn to lower levels. The bulls will then endeavor to raise the price to the downtrend line.
If the price drops and falls below the moving averages, it indicates that sellers are taking advantage of minor increases. This could cause the price to plunge to 102, its closest support.
Bitcoin price analysis
The lengthy tail on the July 2 Bitcoin candlestick reveals that the bulls are taking advantage of the intraday dips. The buyers will attempt to solidify their foothold by pushing and keeping the price above the overhead resistance at $31,000.
Should they be successful in achieving that, the BTC/USDT pair may gain traction and begin its ascent towards $40,000. Although there may be some resistance at the $32,400 mark, it is expected to be overcome.
The 20-day exponential moving average ($29,446) being on the rise and the relative strength index (RSI) close to the overbought area suggests that buyers have the upper hand. For sellers to gain control of the market in the short-term, they must drive the price beneath the 20-day EMA. This could cause the pair to plunge to the 50-day simple moving average ($27,704).
Ether price analysis
On July 2, the bears attempted to drive Ether (ETH) down to the 20-day EMA ($1,866), but the long wick on the candlestick indicates that the bulls are buying up small dips.
The 20-day EMA has shifted upwards and the RSI is over 62, demonstrating that the bulls have the advantage. There is a slight impediment at $2,000, but it is likely to be surpassed. The ETH/USDT pair could then surge to the overhead resistance area between $2,142 and $2,200. Sellers are anticipated to protect this zone with determination.
If the price of $2,000 drops below the moving averages in the near future, this optimistic outlook will no longer be valid. It is likely that the pair will stay within the range of $1,626 and $2,000 for a while longer.
BNB price analysis
On July 1, BNB (BNB) surpassed the 20-day EMA ($245), demonstrating that the selling pressure is decreasing.
The 20-day EMA has leveled off and the RSI has moved close to the midpoint, suggesting that the BNB/USDT pair could remain between $220 and $265 for a few more days. If the price is sustained above the 20-day EMA, the pair could ascend to the overhead resistance at $265. Bears are anticipated to strongly protect this level.
If the price drops and falls below the 20-day EMA, it implies that any attempts to recover are being met with selling pressure. This could cause the pair to plunge to the strong support level of $220.
XRP price analysis
The bulls are attempting to push XRP (XRP) beyond the 20-day EMA ($0.48), however the bears are actively resisting at this level.
If buyers refrain from permitting the price to drop too far below its current position, the chances of surpassing the 20-day EMA will be higher. This could initiate the XRP/USDT pair’s journey towards $0.53 and then $0.58.
If the price sharply decreases from its present level, it indicates that there is strong selling near the 20-day EMA. For the bears to gain control, they will have to push the price below $0.44. This could cause the pair to drop to $0.41.
Cardano price analysis
The bears were able to protect the $0.30 resistance on June 30, but they were unable to keep Cardano (ADA) below the 20-day EMA ($0.29). This implies that every minor decline is being bought.
The 20-day EMA has leveled off and the RSI is close to the middle, suggesting the bears may be weakening. Buyers are attempting to gain control by pushing the price up above $0.30. If successful, this could be the start of a powerful rebound. The 50-day SMA ($0.32) could act as a hindrance, but it is likely to be surpassed.
This optimistic outlook will soon be rendered invalid if the price drops drastically from its current level. This could potentially cause the pair to remain within the $0.30 to $0.24 range for a longer period.
Bitcoin traders are uncertain whether to expect a breakout or a $28K dip as the BTC price remains stagnant.
Dogecoin price analysis
Dogecoin (DOGE) saw a jump above the resistance at $0.07 on July 1, however the long wick on the candlestick indicates that there was selling at higher levels.
The inability to keep the price above the overhead resistance points to the DOGE/USDT pair staying within the bounds of $0.06 and $0.07. To indicate the beginning of a lasting rebound, buyers must maintain the price above $0.07. This could then result in the pair surging to $0.08.
On the contrary, the $0.06 level is the main support that must be taken into account. If it is breached and the closing price is below this level, a further decrease to $0.05 is likely.
Solana price analysis
For the past three days, Solana (SOL) has been trading between the 20-day EMA ($17.61) and the downtrend line, indicating that bears are selling close to the downtrend line while bulls are buying on the dips.
The 20-day EMA has been increasing and the RSI has entered positive territory, suggesting that bulls are in control. This increases the likelihood of surpassing the downtrend line. If this occurs, the SOL/USDT pair could climb to $22 and then to $24.
Should the cost drastically fall from its current price and dip beneath the 20-day EMA, it implies that the sentiment continues to be bearish, and traders are selling on upticks. This could drive the pair to the $16.18 to $15.28 support area.
Litecoin price analysis
Litecoin (LTC) surpassed the resistance of $106 on June 30 and the bulls have kept the rate above this point since then.
The bears have not yet abandoned their efforts, attempting to impede the rise at the next resistance at $115. If the bulls can hold the price above $106, the chance of the uptrend continuing will be improved. The LTC/USDT pair could then potentially surge to the region between $134 and $144.
If the support level of $106 is breached, it could be a sign that those who had recently bought the asset are taking profits, which could lead to a drop in price to the 20-day exponential moving average of $93.
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