The S&P 500 Index (SPX) ended its five-week run of gains last week, yet it is still projected to finish the first half of the year with impressive gains of almost 13%. The tech-oriented Nasdaq Composite has performed even better, rising around 29%. Both these indices have been outdone by Bitcoin (BTC), which has increased by an impressive 83% since the beginning of the year.
Bitcoin’s increasing value and the recent surge of companies applying for a Bitcoin spot exchange-traded fund have evidently drawn the attention of institutional investors. Eric Balchunas, a senior ETF analyst at Bloomberg, noted on June 26 that the ProShares Bitcoin Strategy ETF (BITO) — a Bitcoin futures fund — had its most significant weekly influx in 12 months.
LookIntoBitcoin founder Philip Swift has a bullish outlook on Bitcoin, as his latest research shows that the RHODL ratio metric indicates an increased mainstream trading interest, as the supply of Bitcoin is transitioning from long-term holders to speculative investors.
Let us examine the charts to determine if the entrance of speculators could drive prices higher, or if it is an indication that the markets are over-heated in the short-term and may soon decrease.
S&P 500 Index price analysis
The S&P 500 Index dropped from 4,448 on June 16, signaling that the short-term bulls are cashing out. This has caused the price to drop to the breakout point near 4,325. The 20-day exponential moving average (4,314) is just below this area, so the bulls are expected to fiercely defend it.
If the price reverses off the 20-day exponential moving average, it implies that sentiment is still positive and traders are treating dips as buying chances. The bulls will then attempt to push the price higher than 4,448 in order to continue the uptrend. If successful, the index may try to rally up to 4,650. There is a slight resistance at 4,500, however, it is likely to be surpassed.
This optimistic outlook will be rendered invalid in the short run if the price drops and sinks below the 20-day exponential moving average. Then the index could begin a more considerable decline to the 50-day simple moving average (4,206).
U.S. dollar index price analysis
The U.S. dollar index dropped below the 50-day SMA (102.68) on June 15, however the bears were not able to capitalize on this momentum. The bulls are now attempting to create a higher low close to 102.
Buyers drove the price up beyond the moving averages on June 23, but the long wick of the candlestick reveals that bears are selling at higher prices. The 20-day EMA (102.92) is leveling off and the RSI is close to the midpoint, demonstrating an equilibrium between buyers and sellers.
If the price closes higher than the 20-day EMA, the index could ascend to the downtrend line. Bears are anticipated to vigorously defend this level. 102 is the significant level to be aware of on the downside. If it breaks and closes beneath this backing, the index could decline to 100.82.
Bitcoin price analysis
The bears are strongly protecting the $31,000 mark, yet the bulls are not permitting the price to stay beneath $30,000. This indicates that lower prices are being purchased.
A close grouping near the overhead resistance level of $31,000 demonstrates that bulls are not planning to take profits as they anticipate the increase in price to continue. The climbing 20-day EMA ($28,288) and the relative strength index (RSI) close to the overbought region signify the easiest path is up.
Should bulls drive the BTC/USDT pair beyond the $31,000 to $31,500 resistance area, it would indicate the commencement of the following stage of the uptrend. There is a slight resistance at $32,400 however it may not keep the price for long. If the price rises above this resistance, it could create the way for a surge to $40,000.
Ether price analysis
Ether (ETH) has been confined to a narrow band between $1,936 and $1,861 over the past several days, indicating a lack of consensus between buyers and sellers.
The 20-day Exponential Moving Average ($1,822) increasing and the Relative Strength Index in the positive region suggest that the bulls have the advantage. If the buyers push the cost beyond $1,936, the ETH/USDT pair could ascend to the psychologically significant level of $2,000. This boundary may present a challenge, but it is likely to be surpassed. The pair could then ascend towards $2,200.
If bears are looking to impede the uptrend, they will need to push the price below the support at $1,861. The pair could then decline to the moving averages, which is an important point to watch. If this level is broken, the pair could potentially plunge towards $1,700.
BNB price analysis
BNB (BNB) demonstrated a bounce off the strong support at $230 on June 24, suggesting that the buyers are attempting to stop the decrease at this point.
The bulls need to keep the price above the 20-day EMA ($250) to demonstrate strength. If they do, the BNB/USDT pair could go up to the breakdown level of $265. If the price drops sharply from that point, it would imply that the bears are taking advantage of rallies, which could cause the pair to stay between $265 and $220 for a period of time.
If the price falls from the 20-day EMA and drops below $230, it indicates that the bears have the upper hand. They could try to push the price below the key support at $220, thus initiating another bearish move. The next support level is at $200.
XRP price analysis
The bulls have been attempting to drive XRP (XRP) above the 20-day EMA ($0.49) in recent days, however the bears have not given way.
Sellers may attempt to drive the price lower than the robust support at the 50-day SMA ($0.48). If they succeed, the XRP/USDT pair may decline to $0.44 and then to $0.41. The steadily descending 20-day EMA and the RSI close to 45 suggest that the bears have a slight advantage.
The positive side is that the 20-day EMA is still the level to watch. Buyers need to push and sustain the price higher than this level to gain momentum. This could lead to the pair attempting to surge to $0.56.
Cardano price analysis
The bulls are struggling to keep Cardano (ADA) above the breakdown level of $0.30, indicating that the bears are fiercely defending this level.
The ADA/USDT pair has been trading in a tight channel near the overhead resistance, which shows that there is a lack of agreement between buyers and sellers. If the price drops and goes below $0.28, it could signal that the pair will be confined to a range between $0.24 and $0.30 for a few days.
If bulls manage to push and keep the price above $0.30, it could be seen as the beginning of a more robust recovery towards the 50-day SMA ($0.33). This could be a difficult barrier to overcome, but if it is crossed, the pair could reach $0.38.
Bitcoin has surged to $30K as traders anticipate that US trading will bolster the BTC price.
Dogecoin price analysis
Dogecoin (DOGE) declined from the overhead resistance of $0.07 on June 23, showing that the bears are actively protecting the level.
The 20-day EMA has leveled out at $0.07 and the RSI is slightly below the midpoint, suggesting a balance between buyers and sellers. If the cost falls below the 20-day EMA, the DOGE/USDT pair is likely to stay within the range of $0.06 and $0.07 for some time.
The first indication of strength will be a surge past the resistance level of $0.07. Buyers will then attempt to push the rebound further to $0.08. Conversely, a breach and closure beneath $0.06 could initiate a more serious decline to $0.05.
Solana price analysis
The upturn in Solana (SOL) is meeting stiff opposition at the 20-day EMA ($17), showing that the bears are still active and they are selling on any increases.
Sellers must lower the price below the immediate support level of $16.18 in order to regain control. The SOL/USDT pair could then attempt to re-examine the significant support range between $15.28 and $14.
If the price goes up from its current level and surpasses $17.75, it will indicate that bulls have a slight advantage. The pair may then climb to the $18.70 breakdown point. The 50-day Simple Moving Average ($18.82) is just above this level, so the bears are likely to put up a strong resistance.
Litecoin price analysis
Litecoin (LTC) declined from the resistance line of the descending channel on June 24 and touched the moving averages.
The long wick on the candlestick for June 24-26 indicates that the bulls are taking advantage of the dips to the 50-day SMA ($85). Buyers will attempt to drive the price to the resistance line of the channel, which is the key resistance to monitor. If the bulls manage to break through this barrier, the LTC/USDT pair could initiate an uptrend towards $105.
If the price continues to fall and drops below the moving averages, it implies that bears are in control. The pair could consequently decline to $76 and eventually reach the support line of the channel.
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