The S&P 500 Index (SPX) has seen a five-week increase, the first since November 2021. In contrast, Bitcoin (BTC) is trading far below its peak of $31,000, reached on April 14. This indicates a stark difference between the performance of the two assets.
Analysts anticipate that Bitcoin’s current trading pattern will persist for a while. Cryptocurrency traders are searching for catalysts that could propel the price out of the range. There is speculation in the markets that Fidelity Investments may also apply for a Bitcoin spot exchange-traded fund, following the example of BlackRock. If this comes to fruition, it would be a positive sign for the markets.
The past week saw the U.S. Dollar Index (DXY) weaken, which has been a boon for the cryptocurrency markets. Historically, there has been an inverse correlation between the dollar and Bitcoin, which could help to stave off a further decline in Bitcoin and potentially spark a rally.
Let’s analyze the key levels of resistance that must be surpassed to initiate a long-term resurgence in Bitcoin and the main altcoins.
S&P 500 Index price analysis
The S&P 500 Index has been on an upward trajectory in the short-term. The recent surge in value has caused the relative strength index (RSI) to enter the overbought zone, suggesting that a slight pullback or period of consolidation is likely.
The index could drop and check the 4,325 breakout point again. If the price bounces off this point, it would indicate that buyers have changed 4,325 into a support level. This would improve the chances of a surge up to 4,500 and then 4,650.
Contrary to this belief, if the price drops and breaches the 20-day Exponential Moving Average of 4,283, it could signify a decrease in bullish energy. This could cause the index to fall to the 50-day Simple Moving Average of 4,180. If it dips below this point, the bears may have the upper hand.
U.S. Dollar Index price analysis
The bulls’ inability to keep the U.S. Dollar Index above the 20-day EMA (103) on June 12 caused a surge in selling, which drove the index below the 50-day SMA (102) on June 15.
The 20-day EMA has begun to move downward and the RSI is in bearish territory, suggesting that bears are in control. Sellers will attempt to push the price to the important support at 100.82. If this level is breached and closed below, it will signify the recommencement of the downtrend.
If buyers manage to raise the price back above the moving averages quickly, it could indicate that the index could rise up to the downtrend line. To enable a possible rally to 106, buyers must lift the price beyond this point.
Bitcoin price analysis
For the past several weeks, Bitcoin has been experiencing a correction within the framework of a descending channel pattern.
The 20-day EMA has reached a plateau at $26,389 and the RSI has risen to the midpoint, suggesting that the selling pressure may be abating. Buyers may attempt to lift the price to the resistance line of the channel. This is a significant threshold for the bears to protect, as a breach and closure above it could initiate a new uptrend.
If the price suddenly drops from its present level, it indicates that bears are still selling when prices rise. The BTC/USDT pair could then test the solid support range of $25,250 to $24,800.
Ether price analysis
Ether (ETH) has been attempting to begin a recovery, but it is being met with selling pressure at the 20-day EMA ($1,766). On the bright side, the bulls have kept the price from falling below $1,700.
If the ETH/USDT pair’s price increases from $1,700, it could indicate that the short-term corrective phase is ending. If that is the case, the pair could attempt to move above the 20-day EMA and potentially reach $1,928 and then $2,000.
If the price drops below $1,700 from its current level, it will show that bears are still in control. Minor support is at $1,600, but if that is breached, the pair could drop to $1,352.
BNB price analysis
The relief rally of BNB (BNB) is seeing some selling pressure at the 38.2% Fibonacci retracement level of $252.50, yet a positive indication is that the bulls have not ceded much territory.
The bulls will make another attempt to push the cost higher than the resistance area situated between $252.50 and the 20-day EMA ($259). If they are successful, the BNB/USDT pair could ascend to the 61.8% Fibonacci retracement level of $272.50. The bears are expected to guard this level with vigor.
Contrary to this assumption, if the price drops from its current level or the resistance level above, it will indicate that the bears are not ready to release their grip. The pair could then fall back to the key support at $220.
XRP price analysis
The bears attempted to push XRP (XRP) beneath the 50-day SMA ($0.47) between June 14 and 17, yet they were unable to hold the lower levels. This implies that buying on declines is a viable option.
The bulls are attempting to elevate the price beyond the 20-day EMA ($0.49). If successful, this could suggest that the XRP/USDT pair may oscillate between the 50-day SMA and $0.56 for a while. The flattening 20-day EMA and the RSI close to 50 also imply a potential consolidation in the near future.
If bears wish to stay in control, they must swiftly push the cost down to below $0.45. This could prompt more selling and cause the pair to drop to $0.41.
Cardano price analysis
The bulls are attempting to initiate a recovery rally in Cardano (ADA) despite the RSI being in highly oversold territory.
The bears are attempting to drive the price down to the crucial support level of $0.24. It is imperative to keep an eye on this support as if it breaks, the ADA/USDT pair may plummet to $0.22 and then further decrease to $0.20.
Buyers may have other ideas in mind. They will be determined to defend the area between $0.24 and $0.22. If the price moves up from this region, it could mean that the pair may remain in the range of $0.24 to $0.30 for some time. The first indication of strength will be a break and closing above the 20-day exponential moving average ($0.30).
What is causing the drop in Cardano’s price today?
Dogecoin price analysis
Dogecoin (DOGE) has been confined to a narrow trading area between the 20-day Exponential Moving Average ($0.06) and the horizontal support level of $0.06 over the last few days.
The inability of the DOGE/USDT pair to go above the 20-day EMA implies that sentiment stays bearish and the bears are unloading at every slight increase. This raises the danger of a breach beneath the essential support at $0.06. If this threshold fails, the pair could plunge to $0.05.
The positive side is that the 20-day EMA is still the main barrier for the bulls to overcome. If they can keep the price above this obstacle, the pair could surge to $0.08. This could be a formidable challenge for the bulls.
Solana price analysis
Solana (SOL) is facing a hard fight close to the $15.28 mark. Buyers have managed to elevate the cost beyond this point, yet they have not managed to break through the resistance at $16.18.
The bears are attempting to push the price beneath $15.28. If successful, the SOL/USDT pair could drop to $14.06 and then to the support line of $12.80. This is a significant level to keep an eye on as, if breached, the pair may plummet to $10.
The first indication of strength will be if the price rises above the area between $16.18 and the 20-day EMA ($17.03). This could open the way for a possible revisit of the breakdown level of $18.70, which is likely to be met with strong resistance from the bears.
Litecoin price analysis
The bulls appear to be attempting to maintain Litecoin (LTC) above the immediate support at $75, indicating that lower prices are being purchased.
The bulls will attempt to raise the cost up to the overhead obstruction at the 20-day EMA ($81). This boundary is likely to experience solid selling from the bears, as they will endeavor to keep up their power. If the cost goes down from the present level or the 20-day EMA, it will permit a potential retest of the help territory between $75 and $70.
If the bulls push the price above the 20-day EMA, it could be a sign that the bears are weakening. The LTC/USDT pair may then surge to $90.
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