Bitcoin Surge Decouples from S&P 500 as Crypto Market Awaits SEC ETF Decision
Summary:
This article explores the recent trends in cryptocurrency prices. Bitcoin's price surged over the past week, decoupling from the S&P 500 Index, which saw a decrease. The possible approval of a Bitcoin exchange-traded fund by the United States Securities and Exchange Commission is fueling these gains. Other cryptocurrencies such as Ether, BNB, Cardano, Dogecoin, and Toncoin are also discussed. Potential investors are urged to conduct their own research due to the inherent risks of trading.
Over the previous week, Bitcoin's price surged upwards by 15%, following an increase of 10.45% the prior week. This is in sharp contrast to the S&P 500 Index, which experienced a drop of 2.53% and 2.39% over the same period. This indicates that Bitcoin's performance is deviating from the S&P 500 Index and could potentially be moving independently. Regardless, a smooth upwards trajectory cannot be guaranteed. Potential volatility could arise from the Federal Open Market Committee's meeting on Nov. 1, although it is unlikely to have any long-term impact, given the 98% probability forecasted by CME’s FedWatch Tool that rates will remain the same.
Coin360's daily cryptocurrency market performance illustrates how a significant portion of Bitcoin's rise in value is due to anticipation of approval for a spot Bitcoin exchange-traded fund by the United States Securities and Exchange Commission. However, should there be any negative developments in this area, it could severely hamper the optimistic outlook of investors. An increase in traders actively pursuing higher prices can further escalate the risk of a short-term pullback. To maintain a positive market sentiment, it's crucial to identify and secure the critical support levels on Bitcoin and altcoins.
In recent activity, the S&P 500 Index (SPX) has shown signs of a strong downward trend, teetering near the major support zone between 4,050 and 4,100. The recent sharp drop has shifted the relative strength index (RSI) into the oversold vicinity, implying a potential pullback. Traders should expect bearish activity near the 20-day exponential moving average of 4,255. If a steep price decline from this point occurs, it means the market sentiment remains pessimistic, with traders opting to sell during rallies.
The U.S Dollar index (DXY) managed a rebound from the 50-day simple moving average of 105 on October 24, sending a signal that lower levels are enticing to buyers. However, a negative divergence on the RSI indicates a weakening bull momentum that could result in the index hovering between 105.36 and 107.35 for a while.
After an impressive surge, Bitcoin is currently consolidating within $33,390 and $35,380. This signals bullish intent, demonstrating a lack of rush from investors to bank profits. Warning signs of overbought levels on the RSI necessitate caution, but the increasing moving averages indicate that the bullish sentiment prevails.
The price of Ether (ETH) has remained consistently above the breakout level of $1,746, but the recovery has not managed to gain much traction, thereby implying that demand subsides at loftier levels.
BNB has remained range-bound between $235 and $203 for the past several days. The positive RSI and ascendant 20-day EMA of 219 imply a minor bullish advantage.
Cardano (ADA) continues to stay above the breakout level of $0.28, however, progress to breach the overhead resistance of $0.30 has been arduous. On the other hand, Dogecoin (DOGE) sees a tense standoff between the bulls and the bears at around $0.07, and Toncoin (TON) saw a small drawback on October 27 but has since seen an equalizing sentiment between buyers and sellers.
In summary, potential investors must beware that all investment and trading decisions carry a degree of risk and should not be undertaken without thorough research.
Published At
10/30/2023 6:30:00 PM
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