Market Analysis:
The S&P 500 Index (SPX) experienced a sharp decline of 4.25% last week, indicating profit-taking near its all-time high of 5,670. Bitcoin (BTC) also faced bearish pressure, falling 4.24% as traders explored the potential for a new downtrend.
In response, the United States-based spot Bitcoin exchange-traded funds (ETFs) have witnessed a significant outflow of $1.2 billion in just eight days, according to Bloomberg data.
Technical Analysis:
S&P 500 Index:
- The index is at risk of forming a double-top pattern, which could be confirmed by a break below 5,119.
- Bears have pulled the price below the moving averages, weakening the bullish momentum.
- Buyers are likely to defend the 5,265-5,119 zone.
- A rebound above the moving averages would indicate potential recovery.
US Dollar Index:
- The DXY rallied off the 100.50 level, suggesting strong buying sentiment.
- A move above the 20-day EMA would support a further climb towards the 50-day SMA.
- A sharp reversal below the 20-day EMA could lead to a possible break below 100.50.
Bitcoin:
- BTC closed below $55,724 but has recovered, indicating a lack of selling pressure at lower levels.
- A break above $55,724 and the 20-day EMA could negate the breakdown.
- A fall below $52,550 could signal the start of a new downtrend.
Ether:
- ETH faces resistance at $2,300, where bears are aiming to establish it as a resistance level.
- A break below $2,111 could lead to further declines towards $2,000.
- A move above the 20-day EMA is necessary for a bullish recovery.
BNB:
- BNB has bounced off $471, with bulls defending the $495-460 zone.
- Resistance at the moving averages could lead to another attempt to break below $460.
- A break above the moving averages would suggest potential sideways movement.
Solana:
- SOL is struggling to find support at $116, with bears continuing to sell on rallies.
- A break below $116 could lead to a further decline to $100.
- A recovery above the 20-day EMA would indicate buying on dips.
XRP:
- XRP has fallen below $0.54, weakening the bullish momentum.
- A drop to $0.46 seems likely, with buyers defending the $0.46-0.41 zone.
- A move above the 50-day SMA would signal a possible comeback.
Dogecoin:
- DOGE remains in a downtrend, with bulls attempting to establish a higher low at $0.09.
- A break above the 20-day EMA could lead to a rally towards the downtrend line.
- A break below $0.09 would indicate continued bearish pressure.
Toncoin:
- TON has risen above the breakdown level of $4.72, suggesting buying interest.
- Resistance at the 20-day EMA could lead to a pullback.
- A break above the 20-day EMA would indicate a reduction in selling pressure.
Cardano:
- ADA has bounced off $0.31, potentially forming a double bottom pattern.
- A break above $0.40 would confirm this pattern.
- A break above the 50-day SMA would indicate the start of a new uptrend.
Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Cryptocurrencies are highly volatile and involve significant risk.