The S&P 500 Index Rises for Third Consecutive Week, Bitcoin Consolidates Below $38,000
The S&P 500 Index (SPX) saw a 2.24% increase last week, marking its third consecutive weekly gain. In contrast, Bitcoin (BTC) only managed a small gain of 0.8%, indicating consolidation below the $38,000 level. Despite the 125% rally in 2023, cryptocurrency investors have held onto their Bitcoin holdings, demonstrating their long-term bullish view.
According to a report by digital asset platform Fineqia, investors have also increased their exposure to global cryptocurrency exchange-traded products (ETP) in 2023. Crypto ETP assets under management grew by 91% from January 1 to October 31, 2023.
S&P 500 Index Price Analysis
The S&P 500 Index recently surged above the downtrend line, signaling the end of a corrective phase. The moving averages have also completed a bullish crossover, with the relative strength index (RSI) in the overbought territory, indicating that bulls are in control. A minor resistance can be seen in the 4,512 to 4,541 zone, which may result in a pullback. However, the 20-day exponential moving average (EMA) is likely to act as strong support. If the price rebounds off this level, it will suggest a positive trend and increase the chances of a rally to 4,650.
U.S. Dollar Index Price Analysis
The U.S. Dollar Index has turned down from the 20-day EMA and has broken below the descending channel pattern. This has initiated a correction, with the index reaching the 50% Fibonacci retracement level. The 20-day EMA is now turning down, and the RSI is nearing oversold territory, indicating bearish dominance. If the 103.46 level is broken, the decline may extend to the 61.8% Fibonacci retracement level. However, buyers are likely to defend the zone between 103.46 and 102.55. The first sign of strength will be a break and close above the 20-day EMA.
Bitcoin Price Analysis
Bitcoin found support at the 20-day EMA and has been gradually moving up towards the important resistance at $38,000. However, the bears have guarded this level in the past, and they will likely try to do the same again. If the price turns down sharply from the resistance and breaks below the 20-day EMA, it may trigger stops of short-term traders and start a correction. On the other hand, if bulls pierce the $38,000 resistance, it will indicate the start of the next leg of the uptrend.
Ether Price Analysis
Ether (ETH) has been forming a large ascending triangle pattern, which will complete on a break and close above $2,200. The bulls have been buying the dips to the 20-day EMA, indicating that lower levels continue to attract buyers. If the price sustains above $2,000, the ETH/USDT pair could attempt a rally to $2,090 and then to $2,200. However, if the price turns down and breaks below the 20-day EMA, it will signal that the bears are attempting a comeback in the near term.
BNB Price Analysis
The bulls have successfully held BNB (BNB) above the 20-day EMA for the past few days, indicating positive sentiment and buying on dips. The bulls will now try to push the price above $258 and retest the resistance at $265. A break and close above this level will complete a rounding bottom pattern and may lead to a rally to $305. On the other hand, if the price turns down and breaks below the 20-day EMA, it will suggest that the bulls are losing their grip.
XRP Price Analysis
XRP (XRP) fell below the 20-day EMA on November 16 but has found support above the next level at $0.56. This suggests that lower levels are attracting buyers. If buyers push and sustain the price above the 20-day EMA, it will suggest that a relief rally has begun, with potential targets at $0.67 and $0.74. However, the price action inside the range is likely to remain random and volatile until there is a breakout above $0.74 or a breakdown below $0.56.
Solana Price Analysis
Solana (SOL) is struggling to stay above $59, indicating bearish activity at higher levels. However, the fact that the bulls have not given up much ground suggests that buyers anticipate the uptrend to continue. On the upside, a break and close above $68.20 could clear the path for a rally to $77. This bullish view will be invalidated if the price turns down and falls below the 20-day EMA, which could lead to a drop to the crucial support level at $48.
Cardano Price Analysis
Cardano (ADA) has been facing resistance near the $0.38 level, with a battle between the bulls and the bears. The upsloping moving averages and the RSI in the overbought zone indicate that the bulls have an advantage. If the price stays above the resistance zone, the ADA/USDT pair could rally to $0.46. However, if the price falls below the 20-day EMA, the pair may slide to the 50-day SMA.
Dogecoin Price Analysis
Dogecoin (DOGE) has been gradually moving higher, but the bulls have struggled to sustain a breakout above $0.08. The price turned down but found support at $0.08, indicating that this level has flipped into support. If the bulls manage to defend this level, the DOGE/USDT pair could reach $0.10. However, a bearish divergence in the RSI suggests that momentum may be slowing down, and sellers will need to push the price below the 20-day EMA to gain control.
Chainlink Price Analysis
Chainlink (LINK) experienced selling pressure near the 20-day EMA but found solid buying at lower levels. There is a minor resistance at $15.40, but if this level is surpassed, the LINK/USDT pair could retest the local high at $16.60. A break and close above this level could lead to further upside. On the other hand, if the price falls below the 20-day EMA, the pair may drop to the crucial support level at $13.64.
