Bitcoin Aims Strong Start Above $70,000, Bulls Dominate Crypto Market
Summary:
Bitcoin starts the week strong, aiming to stay above $70,000. Analysts are optimistic for a turnaround this week, following a record negative inflow into Bitcoin spot Exchange-Traded Funds (ETFs) last week. Goldman Sachs reports its clients' significant appetite for the company's future and options offerings. Progress is seen across the S&P 500 Index, and the U.S. dollar Index (DXY). Bitcoin and Ethereum demonstrate bullish behavior, alongside altcoins such as Binance Coin (BNB), Solana (SOL), Ripple (XRP), Dogecoin (DOGE), Cardano (ADA), and Avalanche (AVAX).
As the new week kicks off, Bitcoin (BTC) is making strong strides to stay above the $70,000 threshold. Market watchers are optimistic of a turnaround this week, following a record five consecutive days of unfavorable inflows into Bitcoin spot Exchange-Traded Funds (ETFs) in the previous week. According to Goldman Sachs, its clientele has an elevated appetite for the firm's future and options offerings. Goldman's Head of Digital Assets for Asia Pacific, Max Minton, noted an uptick in interest from the firm's larger clients towards the crypto sector, triggered by the introduction of the Bitcoin spot ETFs.
Recently, the daily performance of the cryptocurrency market has shown significant demand for Bitcoin spot ETFs. Observers conclude that unless Bitcoin experiences a drastic fall, market participants would likely continue investing in Bitcoin, even buying during dips. The key resistance benchmarks for Bitcoin and altcoins are under close evaluation.
The S&P 500 Index is witnessing a steady rise, a clear reflection of the dominance of buyers. The growth may, however, face some resistance. If it falters against such resistance, it's likely that the index will remain within the ascending pattern. A leap above this pattern could potentially trigger bullish momentum, potentially catapulting the index towards 5,450. Conversely, if the index dips below the 20-day exponential moving average (5,147), it could signify that bulls are scrambling for the exits which could result in a selling spree dropping the price near the 50-day simple moving average (5,018). The RSI's negative divergence signals a possible near-term correction.
The U.S. dollar Index (DXY) experienced a downward pull, falling below the 20-day EMA ($103) on March 20 but didn't succeed in maintaining this level. On March 21, the index shot up reaching above the moving averages. This suggests shrewd buying practices at lower metrics. It is expected that the index will rise to meet substantial resistance at 105. If the price trends downwards from here, the index could remain within the 102.50 and 105 band for a while longer.
Shifting focus to Bitcoin, it has broken out of its recent pennant formation signifying a bullish take over. Should the bulls retain the price above $69,000, the currency is projected to ascend to the overhead resistance at $73,777. Should the bulls triumph over this barrier, there's a potential for a rally to $80,000. However, if the price falls from its current point, it would signal a bull trap scenario, triggering the bears to pull the price down towards the pennant. This could precipitate a drop to the 50-day SMA ($59,018).
Ether (ETH) has successfully broken out of its 20-day EMA ($3,521) on March 25, demonstrating the inherent power of the bulls. Should the price remain above this EMA, it's indicating the correction phase is likely over.
Price movements in Binance Coin (BNB) seemed positive as it escalated above the overhead resistance at $590, which experts had earmarked as a significant level. Simultaneously, Solana (SOL), an altcoin, has rebounded off the 20-day EMA ($168) on March 24, suggesting that traders are considering buying at lower costs.
In the XRP camp, this digital asset has remained around the 20-day EMA ($0.62) over the past several days, suggestive of a tug of war between the buyers and sellers.
Dogecoin (DOGE), on the other hand, has reached a substantial resistance at $0.19, where it is expected to encounter solid opposition.
Meanwhile, Cardano's (ADA) recovery has hit its significant resistance at the 20-day EMA of $0.66. Should the price decline, it may drop to $0.57, potentially completing a bearish head-and-shoulders pattern.
Lastly, Avalanche (AVAX) has remained above the breakout level of $50 in recent days. This means the bulls are holding strong. The AVAX is expected to retest a crucial resistance at $65.
Published At
3/25/2024 9:40:00 PM
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