Bitcoin Rally Sparks Market Highs Following Lower-than-Expected US Inflation Report
Summary:
The S&P 500 Index and the Nasdaq Composite reached an all-time high following lower than expected US Consumer inflation report, sparking a Bitcoin rally with prices surging above $66,000. The failure of Bitcoin to sink below $60,000 has reportedly attracted more buyers, signified by an inflow of $130 million into digital asset investment products. Additionally, the State of Wisconsin Investment Board disclosed investments in Bitcoin exchange-traded funds worth approximately $164 million. The performance of Bitcoin and select altcoins was analyzed, with a focus on their ability to overcome near-term resistance.
The S&P 500 Index (SPX) and the Nasdaq Composite experienced an unprecedented high following a lower-than-anticipated United States Consumer inflation report. This incidence sparked a Bitcoin (BTC) rally, causing its price to exceed $66,000. The further away Bitcoin ventures from the $60,000 mark, the less probable a plunge becomes. However, this does not automatically solidify a new uptrend. Mike Novogratz, founder and CEO of Galaxy Digital, speculated during the company's first-quarter earnings call that Bitcoin is expected to stabilize between $55,000 and $75,000 before it ascends again by the end of this quarter.
Bitcoin's strength to stay above the $60,000 level seems to have attracted more investors. The CoinShares' "Digital Asset Fund Flows Weekly" report noted an inflow of $130 million into digital asset investment products, a trend not seen over the last five weeks.
The State of Wisconsin Investment Board (SWIB) has exposed investments in Bitcoin exchange-traded funds, valued at about $164 million. Following this, Bloomberg ETF analyst Eric Balchunas proclaimed in a post that a surge of similar investments by institutions could follow, given their propensity to "move in herds".
The question persists: could Bitcoin and specific altcoins break the immediate resistance and surge further upwards? This conundrum may be untangled by analyzing the charts of the top 10 cryptocurrencies.
Analysis of Bitcoin's price shows a leap above the 20-day exponential moving average ($62,765) on May 15, implying that the bulls have absorbed whatever was on offer. If momentum is maintained, and the price surges above the 50-day simple moving average ($65,152), a rally could unfold toward a strong resistance of $73,777, which the bears will be determined to guard.
Ether's price analysis reveals a potent bounce off the $2,850 support on May 15, demonstrating that the bulls are rigorously defending this position. If the buyers can drive the price above the 20-day EMA ($3,026), the ETH/USDT pair could surge to the resistance line of the descending channel. BNB's price analysis shows a drop below the moving averages on May 14 but a solid rebound from the support line of the symmetrical triangle pattern, which signposts aggressive buying at lower levels.
In the analysis of Solana's prices, the breaking above of the 20-day EMA ($146) on May 15 indicates the reduction in selling pressure. The XRP price analysis shows a bull's attempt to drive the price above the 20-day EMA ($0.51) on May 14 which was countered by the bears. Similarly, the Toncoin price analysis reveals a stab by buyers of Toncoin (TON) to clear the $7.67 resistance.
Dogecoin's price analysis indicates that the bulls are attempting to stop Dogecoin from sliding below the neckline to finish a bearish head-and-shoulders pattern. The Cardano price analysis shows that the bulls' robust buying action was triggered by the failure of the bears to keep Cardano below the support line on May 15.
In the Avalanche price analysis, it has been seen that the price has stayed below the 20-day EMA ($35) for several days. Still, the bears have been unsuccessful in dropping the price to the $29 range support, suggesting weak selling at lower levels. For Shiba Inu, the bulls were able to protect the support line of the symmetrical triangle pattern on May 13. The flattening 20-day EMA ($0.000023) and the RSI near the midpoint did not give a clear advantage either to the bulls or the bears.
Published At
5/16/2024 12:49:25 AM
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