Last week, the S&P 500 Index experienced a significant decline of 3.05% as hopes for interest rate cuts by the US Federal Reserve were dashed due to high inflation readings. In contrast, Bitcoin only saw a slight decline of 1.1%, indicating its strength in the market. Charles Edwards, the founder of Capriole Investments, highlighted that Bitcoin’s raw electricity cost per mined block is $77,400, emphasizing that Bitcoin is currently trading at a substantial discount. The volatility of Bitcoin is expected to continue in the coming days as bulls and bears battle for dominance. If Bitcoin remains range-bound, it may attract buyers to alternative cryptocurrencies that are poised for an upward movement. Let’s analyze the charts to identify key resistance and support levels for Bitcoin and altcoins.
The S&P 500 Index has been undergoing a correction in recent days, signaling a rush of selling pressure from the bulls. The moving averages have completed a bearish crossover, and the relative strength index (RSI) indicates that the bears are in control. However, there is a minor support level at 4,920, which could lead to a rebound in the index. A drop below the 20-day exponential moving average (5,104) could push the index towards the 38.2% Fibonacci retracement level of 4,821. To invalidate this negative view, the price would need to rise above the 20-day EMA, potentially leading to a rise to 5,225.
The US Dollar Index (DXY) has seen an upward turn from the moving averages and has surpassed the 105 resistance level, completing an ascending triangle pattern. The bulls have continued their purchasing momentum, pushing the price above the 106 resistance. This sets the stage for a rally to 108, where the bears are expected to strongly defend. A sharp decline from 108 would indicate fierce bear defense, potentially leading to a drop to 105. A drop and break below the breakout level of 105 would suggest a bull trap, potentially leading to a descent to the uptrend line.
Bitcoin’s recovery is being challenged by the bears at the 20-day EMA ($65,858), but the bulls remain resilient. The flattening 20-day EMA and the RSI near the midpoint indicate a reduction in selling pressure. If buyers push the price above the 50-day simple moving average ($67,511), the BTC/USDT pair could attempt a rally to $73,777. However, if the bears manage to pull the price below the $60,775 support, a deeper correction to the 61.8% Fibonacci retracement level of $54,298 could occur.
Ether has shown signs of a comeback as it rises towards the 20-day EMA ($3,234). The flattening 20-day EMA and the RSI near the midpoint suggest a balance between supply and demand. If the price turns down from the 20-day EMA, the ETH/USDT pair could slip to $3,056. This support level is crucial for the bulls to defend, as a break below it could lead to a drop to $2,850. On the upside, a break above the 20-day EMA would strengthen the buyers and potentially lead to a rise to the 50-day SMA ($3,481) and later to $3,679, indicating the end of the correction.
BNB has risen above the 20-day EMA ($568), opening the possibility of a rally to the overhead resistance at $635. The battle between bulls and bears is expected to intensify near $635. If the bulls prevail, the BNB/USDT pair could continue its uptrend towards $692 and eventually reach the pattern target of $775. However, a sharp decline from the overhead resistance would indicate bearish sentiment, potentially keeping the pair within the $495 to $635 range for some time.
Solana has reached the 20-day EMA ($156), where it is likely to face strong resistance from the bears. If the price turns down from the moving averages, it would suggest negative sentiment and selling on rallies. The price could then decline towards the strong support at $126, with a break below opening the doors for a fall to $100. On the other hand, if the price continues to rise and breaks above the moving averages, it would suggest a bullish comeback. The SOL/USDT pair could then attempt a rally to the overhead resistance of $205.
XRP’s recovery has reached the 20-day EMA ($0.54), indicating strong buying interest from the bulls at lower levels. The bears are likely to provide strong resistance at the 20-day EMA, potentially pushing the price towards the $0.46 to $0.41 support zone. If buyers manage to push the price above the 20-day EMA, the XRP/USDT pair may continue to trade within the range of $0.46 to $0.74 for an extended period.
Toncoin has been trading near the support line of the ascending channel pattern. The lack of aggressive buying at current levels increases the risk of a break below the channel, potentially leading to a down move to the 50-day SMA ($4.90). To prevent this decline, the bulls need to quickly push the price above $6.50, potentially leading to a rally to $7.23 and later to the resistance line.
Dogecoin has been facing resistance at the 20-day EMA ($0.16), but the bulls have managed to hold their ground. The DOGE/USDT pair is expected to rise above the moving averages and reach the downtrend line. This level is critical for the bears to defend, as a break above it would signal the end of the downward move. The pair could then rally to $0.21 and subsequently to $0.23. Conversely, a sharp decline from the moving averages or the downtrend line would indicate bearish control, potentially pushing the price down to $0.14 and then to $0.12.
Cardano has reached the 20-day EMA ($0.52), which is an important level to monitor. The bears are likely to strongly defend this level. If the price turns down from the 20-day EMA, the ADA/USDT pair could drop to $0.46. A strong bounce off this level would suggest the end of the corrective phase and improve the chances of a break above the 20-day EMA. The pair could then climb to $0.57 and later to $0.63. Conversely, a sharp decline below $0.46 would indicate bearish control, potentially pushing the pair down to the crucial support at $0.40.
Disclaimer: This article does not provide investment advice or recommendations. All investment and trading decisions involve risk, and readers should conduct their own research before making a decision.