US Equities Markets Recover; Bitcoin Faces Setback as SEC Delays ETF Decision
Summary:
US equities markets show signs of recovery with S&P 500 Index posting its strongest week since June. Bitcoin faces marginal loss due to delay in SEC decision on Bitcoin ETF applications. Data shows a record high percentage of dormant Bitcoin supply. Technical analysis of S&P 500, US dollar index, Bitcoin, Ether, BNB, XRP, Cardano, Dogecoin, Solana, and Toncoin provided.
The equities markets in the United States are showing signs of recovery, with the S&P 500 Index (SPX) experiencing its strongest week since June, surging by 2.50% last week. Despite an attempted relief rally, Bitcoin (BTC) ended the week with a marginal loss of 0.5%. One of the factors contributing to Bitcoin's loss was the Securities and Exchange Commission's decision to delay its verdict on spot Bitcoin exchange-traded fund applications. However, analysts are still optimistic about the eventual approval of several Bitcoin ETFs. According to data from Glassnode, the supply of currently mined Bitcoin that has been dormant for three years or more has reached a new high of 40.538%. The short-term price action of Bitcoin remains uncertain, but long-term investors continue to hold onto their stockpile. In terms of the S&P 500 Index, if buyers can sustain the price above the moving averages, it will indicate positive sentiment and a tendency for traders to buy on minor dips. This will potentially pave the way for a rally above the overhead resistance level at 4,607, with further targets at 4,650 and 4,800. On the other hand, a break below the moving averages may lead to a decline towards the strong support level at 4,325. The U.S. dollar index (DXY) has rebounded from the downtrend line, with bulls aiming to push the price above 104.45 and eventually towards the overhead resistance at 106. However, a breakdown below the downtrend line may result in a decline towards the 50-day SMA at 102.41 and the critical support at 100.82. Bitcoin is currently trading near the support level between $24,800 and $31,000. The range-bound trading suggests that bulls tend to buy near the support and sell near the resistance. If the $24,800 level gives way, the selling pressure may increase, potentially pushing the BTC/USDT pair to the crucial support at $20,000. However, if bulls can surpass the barrier at $26,833, the pair could test the 50-day SMA at $28,221. Ether (ETH) briefly dipped below the strong support at $1,626 but experienced solid buying at lower levels. The lack of demand at higher levels is evident from the downward slope of both moving averages and the negative territory of the RSI. A break below $1,600 may lead to a decline towards the Aug. 17 intraday low of $1,550, while a break above the 20-day EMA at $1,684 could pave the way for a rise towards the overhead resistance at $1,750. Binance Coin (BNB) has been trading below the breakdown level of $220, but the bears have not been able to capitalize on their advantage. If the price breaks below the psychological level of $200, it may indicate the start of a new downtrend, with the next major support level at $183. XRP briefly dropped below $0.50 but saw a rebound, although the bears have been keeping up the pressure. A downside break could result in a decline towards $0.41, while a break above the 20-day EMA at $0.53 could signal a comeback by the bulls, potentially pushing the price up to $0.56. Cardano (ADA) remains in a consolidation phase between $0.24 and $0.28, with a slight advantage to the bears due to the downsloping 20-day EMA and the RSI below 38. A break below the $0.24 level may initiate a downtrend, while a break above the 20-day EMA could lead to a challenge of the resistance at the 50-day SMA. Dogecoin (DOGE) has been consolidating between the 20-day EMA and the support level at $0.06. A breakthrough below $0.06 could intensify selling pressure, with the next major support at $0.055. On the other hand, a move above the 20-day EMA could lead to a jump towards the 50-day SMA and a surge to $0.08. Solana (SOL) is experiencing a strong corrective phase, with buyers attempting a relief rally but facing selling pressure at the downtrend line. A sharp downturn may push the price down to $18.32 and eventually to $16, while a breakthrough above the downtrend line could invalidate the negative view and potentially lead to a rally towards $22.30. Toncoin (TON) rallied near the resistance at $2.07, with bulls holding onto their positions. Overbought levels on the RSI may indicate a possible correction or consolidation, and a break below the 20-day EMA at $1.61 could lead to a decline towards $1.53 and the 50-day SMA at $1.40. Conversely, a breakthrough at $2.07 could signal a resumption of the uptrend, with targets at the $2.40-2.60 range.
Published At
9/4/2023 4:15:00 PM
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