Bitcoin (BTC) has achieved a significant milestone by reaching the key psychological level of $50,000. This surge can be attributed to the strength in the US stock markets and the inflow of funds into Bitcoin exchange-traded funds (ETFs). A popular trader, Daan Crypto Trades, has highlighted the positive net inflows into Bitcoin ETFs for 11 consecutive days.
While analysts anticipate the continuation of the bull run, James Van Straten, a research and data analyst at CryptoSlate, has cautioned traders about a potential correction. Van Straten has pointed out that Bitcoin’s total supply in profit is reaching 95%, which is typically an indication of market tops.
Although there are short-term risks of a pullback, the long-term outlook appears promising. According to crypto analysis platform Glassnode, certain on-chain indicators suggest that Bitcoin may be in the early stages of a bull market.
The S&P 500 Index has extended its rally above the important level of 5,000, indicating strong demand from buyers. If the price remains above 5,000, the index is likely to gain momentum and surge towards the next target at 5,200. However, the negative divergence on the relative strength index (RSI) suggests a possible correction.
The US Dollar Index is currently consolidating after breaking out of the inverse head-and-shoulders pattern. The positive slope of the 20-day exponential moving average (EMA) and the positive zone of the RSI indicate a slight advantage for the bulls. If the price surpasses 104.60, it will confirm the uptrend and potentially reach 106 and 107.
Bitcoin has broken above the previous high of $48,970, signaling the start of the next leg of the uptrend. A close above $48,970 will confirm the breakout and pave the way for a potential rally to $52,000. Despite a potential minor resistance at $50,000, strong momentum could push the price towards $60,000.
Ether’s recovery has faced resistance near the 61.8% Fibonacci retracement level of $2,507. However, the rising 20-day EMA and the positive RSI indicate that bulls are in control. If the resistance at $2,600 is breached, the ETH/USDT pair could reach $2,717. On the downside, the key support level to watch is $2,400.
BNB has broken above the downtrend line but is struggling to reach the overhead resistance at $338. However, solid buying at lower levels has been observed, which may help clear the resistance at $326 and push the price towards $338. Conversely, a sharp downturn below the moving average may indicate a bearish comeback, with the pair potentially falling to $288.
XRP’s recovery attempt is facing resistance at the 20-day EMA, indicating negative sentiment among traders. If the price falls below the strong support at $0.50, it could slide towards the critical support at $0.46. On the upside, a break above the 20-day EMA could lead to a rally towards $0.67.
Solana has broken above the neckline of the inverse head-and-shoulders pattern and is trying to defend the level during the pullback. If the price remains above $107, it is likely to accelerate towards $117 and $126. A sharp downturn below the moving averages, however, may signal a bull trap and result in a fall to $93 and $80.
Cardano is currently witnessing a battle between bulls and bears near the downtrend line of the descending channel pattern. While the bulls have pushed the price above the channel, the bears are attempting to drag it back below the moving averages. The key support level to watch is $0.46, as a breach of this level may lead to a dive to $0.40.
Avalanche is facing selling pressure near $42, indicating that higher levels are attracting sellers. If the price bounces off the 20-day EMA, it will confirm positive sentiment and potential further gains towards $50. On the downside, a slide below the moving averages may indicate a fake breakout and result in a decline to $32.
Dogecoin has been trading within a symmetrical triangle, indicating indecision between bulls and bears. The price will need to break above the triangle to gain an advantage, potentially leading to a rally towards the resistance zone of $0.10 to $0.11. However, a fall below the uptrend line may result in a drop to the strong support at $0.07.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment decisions.