The S&P 500 Index (SPX) broke its five-week winning streak and declined by 0.42% last week as the United States Consumer Price Index and Producer Price Index for January exceeded expectations. The alarming inflation reports have raised concerns that the Federal Reserve may delay rate cuts until later in the year. Previously, analysts were anticipating a rate cut as early as March.
The negative macroeconomic data has had no impact on Bitcoin’s (BTC) price, which surged by 8% to end the week at $52,137, its highest weekly close since November 2021. Despite facing resistance at $52,000 for the past few days, the Bitcoin bulls have not rushed to take profits, indicating a bullish sentiment among market participants for the long term.
Another positive sign for Bitcoin is the slowing outflows from the Grayscale Bitcoin Trust (GBTC). After a massive outflow of $5.64 billion in January, the outflows have decreased to $1.37 billion in February.
Could this be the start of the next uptrend for Bitcoin, leading to a rise in select altcoins? Let’s examine the charts to find out.
S&P 500 Index price analysis
After bouncing off the 20-day exponential moving average (4,940) on Feb. 13, the S&P 500 Index showed signs of an uptrend.
However, the bears are putting up a fight to defend the overhead resistance of 5,048. The relative strength index (RSI) is showing negative divergence, which could lead to a possible correction or consolidation in the near future.
If the index breaks below the 20-day EMA, it could indicate a deeper correction, potentially dropping to the 50-day simple moving average (4,813) and even further to 4,650.
On the other hand, if the index continues to climb and breaks above 5,048, it could signal a continuation of the uptrend, potentially surging towards 5,200.
Understanding the U.S. Dollar Index Price Movement
The U.S. dollar Index (DXY) recently made a bullish attempt on Feb. 13, but encountered significant selling pressure at the 105 mark.
As a result, the price reversed and reached a key support level at the 20-day EMA (104). If the price bounces off this level, the bulls will likely make another push towards 106 and 107.
However, a break below the 20-day EMA would suggest that the bears are still actively selling at higher levels. In this case, the index may drop to the 50-day SMA (103), which is expected to attract buyers.
Bitcoin price analysis
Bitcoin is currently consolidating within an upward trend. The bears are attempting to halt the rally at $52,000, but the bulls are maintaining their momentum.
In a tight consolidation near a critical resistance, it is likely that the outcome will be a continuation of the uptrend. If the bulls are able to push and sustain the price above $52,000, it will signal the beginning of the next phase of the uptrend. This could potentially lead the BTC/USDT pair to surge towards $60,000.
However, if the bears want to prevent this upward movement, they will need to quickly push the price below the 20-day EMA ($48,260). This could result in the triggering of stop losses for many short-term traders, potentially causing the pair to drop to the 50-day SMA ($44,647).
Ether price analysis
Ether (ETH) bounced back from $2,717 on February 17, indicating a potential effort by the bulls to turn the level into a support zone.
The ETH/USDT pair surged above the immediate resistance level of $2,868 on February 18, signaling a continuation of the upward trend. Buyers will strive to maintain the positive momentum and push the price towards the crucial psychological level of $3,000.
The recent rally has pushed the RSI above 78, suggesting a possible minor correction or consolidation in the near future. To confirm a short-term peak, sellers will need to push the price below the 20-day EMA ($2,615).
BNB price analysis
BNB (BNB) has experienced a pullback within its uptrend, indicating that short-term traders are taking profits. Typically, pullbacks in a strong uptrend do not last longer than three days.
The ascending 20-day EMA ($330) and the RSI near the overbought zone suggest that the bulls are currently in control. A break above $367 would confirm the resumption of the uptrend for the BNB/USDT pair, potentially leading to a rally towards $400.
However, if the price continues to decline and falls below $348, the pair may find support at the 20-day EMA. If this level fails to hold, the pair could drop to the 50-day SMA ($314).
XRP price analysis
The XRP (XRP) cryptocurrency has been trading in a tight range between the downtrend line and the 20-day exponential moving average (EMA) of $0.54. This indicates a state of indecision between buyers and sellers.
However, the 20-day EMA is gradually turning upwards and the relative strength index (RSI) has entered the positive zone, suggesting that buyers are gaining control. A decisive break and close above the downtrend line would signal the end of the correction and could lead to a potential rally towards $0.67 for the XRP/USDT pair.
On the other hand, if the price fails to break above the downtrend line and instead drops below the 20-day EMA, it would indicate that sellers are still in charge. This could push the pair down to $0.50.
Solana price analysis
Solana (SOL) experienced a slight pullback to the neckline of the inverse head-and-shoulders pattern on February 17th, but the bulls managed to maintain their position.
The 20-day EMA ($106) is trending upwards and the RSI is currently above 62, indicating that the bulls have control of the market. While there may be a minor resistance at $119, it is likely to be surpassed. As a result, the SOL/USDT pair could potentially retest the strong overhead resistance at $127. If this level is successfully broken, the pair may reach the projected target of $135.
However, this optimistic outlook could be invalidated if the price turns downwards and falls below the 20-day EMA. This could trigger long liquidations, causing the pair to drop to the 50-day SMA ($100).
Exploring the Evolution of the Internet: Web 1.0, 2.0, and 3.0
The recent emergence of federal crypto has sparked discussions about the differences between the various stages of the internet. While Web 1.0 was characterized by static websites and limited user interaction, Web 2.0 ushered in dynamic content and increased user participation. Now, with the rise of Web 3.0, we are seeing the potential for a decentralized internet powered by blockchain technology.
One of the key differences between Web 1.0, 2.0, and 3.0 is the level of control and ownership. While Web 1.0 was largely controlled by corporations and Web 2.0 saw the rise of user-generated content, Web 3.0 aims to give power back to the individual through decentralization and self-sovereignty.
As the crypto market continues to heat up, many are speculating about the potential impact of federal crypto and the differences it may bring compared to traditional cryptocurrencies like ETH. In the weekly crypto market, we are seeing a mix of excitement and caution as investors navigate the volatile landscape.
Meanwhile, popular cryptocurrencies like DOGE are gaining attention and sparking debates about the future of digital currency. With the ever-evolving landscape of the internet and the crypto market, it’s important to keep an eye on the differences between Web 1.0, 2.0, and 3.0 as we move towards the future, with potential for even more advancements in Web 4.0 and beyond.
In the world of crypto, predictions are constantly being made about the future, with some speculating about a potential surge in January 2022. As we continue to explore the world of crypto, it’s clear that it’s a hot topic with no signs of slowing down anytime soon.
Avalanche price analysis
The price of Avalanche (AVAX) experienced a decline from the $42 level on February 15th, but the bulls have managed to keep it above the 20-day EMA ($38.40).
The bulls are now attempting to break through the resistance at $42, which would complete an inverse H&S pattern for the AVAX/USDT pair. If successful, the pair could see a significant surge towards $50, though this level may present a challenge.
Should the price fall, the 20-day EMA will serve as a crucial support level. A break below this level could lead to a drop towards the 50-day SMA ($36.16), signaling a potential period of consolidation between $32 and $42.
Dogecoin price analysis
The bears attempted to pull Dogecoin (DOGE) back into the symmetrical triangle pattern on Feb. 17, but the bulls fiercely defended the level.
The 20-day EMA ($0.08) has gradually turned upwards, and the RSI is currently above 63, indicating a potential comeback from the bulls. If they can break through the $0.09 resistance, the DOGE/USDT pair may see a climb towards the $0.10 to $0.11 zone.
This bullish outlook will be nullified if the price falls below the moving averages, suggesting that the bears are taking advantage of any minor relief rallies. If the uptrend line is breached, selling pressure may intensify.
Subscribe to our email newsletter to get the latest posts delivered right to your email.
Comments