In this week’s market overview, Bitcoin and the S&P 500 Index (SPX) observed a recovery, driven by the expectations of a debt ceiling deal between the White House and congressional Republicans. While this short-term outlook seems promising, traders should remain cautious as the market can be unpredictable.
One factor that bodes well for crypto enthusiasts is Bitcoin’s diminishing supply, as long-term investors continue to hold onto their assets. Glassnode’s “Hodled and Lost Coins” metric has risen to its highest level since May 2018. Moving forward, it is crucial to identify the resistance levels that need to be scaled for the up move to continue in cryptocurrencies such as Bitcoin and altcoins.
The S&P 500 Index experienced a significant upturn from the 50-day simple moving average (SMA) and managed to rise above the 20-day exponential moving average (EMA). If the index breaks past 4,200 and rises to 4,300, there is a likelihood of a break above 4,300, which could kickstart a rally toward the 4,500 to 4,600 zone. However, if the price collapses below 4,050, the index might slump to the uptrend line and subsequently drop to 3,800.
When it comes to Bitcoin price analysis, the recovery from bears pushing the price below the immediate support attracted solid buying from bulls. However, higher levels continue to attract selling. If the 20-day EMA ($27,255) does not slide below, the prospects of a break above the resistance could lead to a rally towards $30,000 and $31,000.
The falling wedge pattern in Ethereum’s price analysis is a positive sign for buyers, indicating that the corrective phase could be ending. If the resistance line is flipped into support, we could see a rally to $2,000 and subsequently to $2,141. The pattern target for this bullish setup is $2,259.
In conclusion, price levels, support, and resistance lines play a crucial role in determining the future of the market. Traders need to stay cautious, monitor market movement, and be prepared for sudden changes. With several factors lined up in favor of the bulls, it will be interesting to see how the market dynamics continue to unfold.
Source: Cointelegraph
