Bitcoin and the S&P 500 Index (SPX) recovered from their respective intra-week lows to finish last week on a positive note. The recovery was large
Bitcoin and the S&P 500 Index (SPX) recovered from their respective intra-week lows to finish last week on a positive note. The recovery was largely driven by the expectations of a debt ceiling deal being reached between the White House and congressional Republicans.
While the short-term picture looks promising, traders should not let their guard down. Many times, the price rises on rumors and falls on the news. It needs to be seen whether the bulls will build upon last week’s strength or give back some of the gains after the deal makes its way through Congress.
One positive in favor of the crypto bulls is that Bitcoin’s supply continues to diminish because long-term investors with conviction refuse to sell their holdings. Glassnode’s “Hodled and Lost Coins” metric has risen to its highest level since May 2018.
Going forward, what are the important resistance levels that need to be scaled for the up move to continue in Bitcoin (BTC) and altcoins? Let’s study the charts to find out.
S&P 500 Index price analysis
The S&P 500 Index turned up sharply from the 50-day simple moving average (SMA) of 4,100 on May 24 and rose above the 20-day exponential moving average (EMA) of 4,145 on May 25.
The bulls are trying to overcome the obstacle at 4,200. If they succeed, the index could rise to 4,300. This level may again act as a strong resistance, but if bulls do not allow the price to drop back below 4,200, the likelihood of a break above 4,300 increases. The index could then start its northward journey to the 4,500 to 4,600 zone.
This positive view will be negated in the near term if the price turns down and collapses below 4,050. The index could then slump to the uptrend line and subsequently to 3,800.
U.S. Dollar Index price analysis
When an asset is consolidating in a range with well-defined boundaries, traders buy the dip near the support and sell close to the resistance. After bouncing off the 100.82 support, the bulls are trying to push the U.S. Dollar Index to the resistance at 106,
The upsloping 20-day EMA (103) and the relative strength index (RSI) near the overbought territory indicate that the bulls are in command in the near term. The up move could reach 106, where the bears are expected to mount a strong defense. If the price turns down from this resistance, it will suggest that the range-bound action may continue for a few more days.
On the downside, the first support is at the 20-day EMA and the next at the 50-day SMA (102). The next trending move is likely to begin on a break above 106 or on a drop below the crucial support at 100.82.
Bitcoin price analysis
The failure of the bears to tug the price below the immediate support at $25,811 attracted solid buying by the bulls. They pushed Bitcoin back into the symmetrical triangle pattern on May 28, but higher levels are attracting selling.
The bears are attempting to stop the recovery at the resistance line of the triangle. If the bulls do not allow the price to slide below the 20-day EMA ($27,255), it will enhance the prospects of a break above the resistance line. If that happens, the BTC/USDT pair could rally to $30,000 and then to $31,000.
On the way down, the first support to watch out for is the 20-day EMA. If this level gives way, it will suggest that the bears are selling on rallies. The pair may then plunge to the vital support zone between $25,811 and $25,250.
Ether price analysis
The falling wedge pattern is a bullish setup. Buyers kicked Ether (ETH) above the resistance line on May 28, indicating that the corrective phase may have ended.
The RSI has jumped into positive territory and the 20-day EMA ($1,841) has started to turn up, indicating that bulls have the upper hand. If bulls flip the resistance line into support, the ETH/USDT pair could rally to $2,000 and subsequently to $2,141. The pattern target of the bullish setup is $2,259.
Contrary to this assumption, if the price turns down sharply and tumbles below the 20-day EMA, it will suggest that the breakout may have been a bull trap. The pair may then crumble to the support line.
BNB price analysis
The bulls pushed BNB (BNB) above the immediate resistance of the 20-day EMA ($311) on May 28, indicating that the $300 level is acting as a strong floor.
Buyers will try to push the price to the resistance line of the descending channel pattern. The bears are expected to defend this level aggressively because if they fail to do that, the BNB/USDT pair could surge to the overhead resistance of $350.
Contrarily, if the price turns down from the resistance line, it will suggest that the pair may spend some more time inside the descending channel. The $300 level remains the key level to watch on the downside because a break below it could sink the pair…
cointelegraph.com