JPMorgan Chase recently acquired the deposits and a majority of assets from the troubled First Republic Bank, marking the failure of the third regional bank in the United States since March. This sheds light on the vulnerabilities in the legacy banking system. Meanwhile, Bitcoin has seen four consecutive months of growth, a performance not achieved since 2013. Will this recovery continue in May? Historical data offers no clarity for bulls or bears this month.
The recovery in Bitcoin currently faces a significant hurdle above $30,000, suggesting that investors may be hesitant to purchase at higher levels. This caution could be fueled by the upcoming Fed meeting on May 2 and 3, known to cause short-term market volatility. Investors should be mindful of key levels in Bitcoin and select altcoins to monitor the probability of continued growth.
Interestingly, the S&P 500 index (SPX) rebounded off the 50-day simple moving average (4,035) on April 26, reaching an overhead resistance of 4,200 on May 1. As the price turns, it will confirm whether traders are buying on dips, or if bears can quickly pull the price below the 50-day SMA.
The U.S. dollar index (DXY) is attempting to break out of its trading range, with the relative strength index (RSI) gradually rising towards the center. If buyers can maintain the price above the 20-day EMA, the index could rally to the 50-day SMA (103.05).
Comparably, Bitcoin has seen aggressive defense from bears at the $30,000 resistance level. Bulls are, however, successfully protecting the 50-day SMA ($28,146), suggesting that the BTC/USDT pair may continue to fluctuate between $26,942 and $30,000.
Ethereum and BNB both face similar struggles as bulls try to push and maintain pricing above their respective resistance levels. XRP, Cardano, and Polygon have all experienced recoveries that have hit resistance points, with strenuous efforts from the bulls to defend current levels.
Dogecoin, however, turned down from the 20-day EMA ($0.08) on April 30, revealing a negative sentiment as bears capitalize on rallies. Solana (SOL) is also facing bearish activity at higher levels, with focus on the 50-day SMA ($21.74).
While investors remain uncertain of the future for some cryptocurrencies, market watch and analysis reveal intriguing trends and areas of strength and weakness. Further research is necessary as every investment and trading move carries risk.