Market Overview

Bitcoin and several alternative cryptocurrencies are currently making attempts to recover; however, higher price levels may lead to significant sell-offs by bearish traders.

Key Highlights:

• Bitcoin is attempting a recovery but may attract selling at higher prices.
• The weak rebound in some altcoins indicates that bearish pressures persist.

Bitcoin (BTC) surged past the $90,000 mark at the start of the week, signifying the bulls are looking to reclaim momentum. Analysts remain divided on BTC’s next move, with some predicting a rise to new all-time highs, while others fear a dip to as low as $70,000.

Maksim Balashevich, the founder of Santiment, expressed skepticism about whether a market bottom has formed. In a recent YouTube video, he stated that BTC could fall to $74,000 due to ongoing online optimism, which may present a favorable trading setup.

Crypto Market Data Crypto market data daily view. Source: CoinMarketCap

Despite short-term uncertainties, $25 billion in year-to-date inflows to BlackRock’s spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT), highlights long-term potential. Eric Balchunas, a Bloomberg ETF analyst, noted that although IBIT had the sixth-highest inflow this year, it was the only fund in the leading group with negative returns. He posed the question, “If a negative year could attract $25 billion, imagine the flow potential in a good year.”

Implications for Major Indices

S&P 500 Index

The S&P 500 Index (SPX) has been fluctuating between 6,550 and 6,920.

A positive development is that bulls are trying to keep the price above moving averages, which could lead to a breakout beyond the 6,920 resistance. Alternatively, sellers are poised to defend this resistance and could pull down prices, placing the index into a prolonged range-bound state.

US Dollar Index

Recently, the US Dollar Index (DXY) fell below support at 98.03, although bears were unable to maintain these levels.

The current rally reached the 20-day exponential moving average (EMA) at 98.79, where selling pressure is mounting. Should the price fail to hold above 98.03, further declines to 97.20 are possible.

Predicted Prices for Major Cryptocurrencies

Bitcoin (BTC)

BTC’s recent rebound at $84,000 faces resistance at the 20-day EMA ($89,322). Continuation above this EMA could pave the way to the 50-day simple moving average (SMA) priced at $92,754 and subsequently to resistance at $94,589. Sellers are anticipated to defend this value aggressively, as surpassing it could indicate the end of the corrective phase.

Ether (ETH)

Ether has shaped a symmetrical triangle pattern, reflecting uncertainty about upcoming moves. A breach above the moving averages may lead ETH towards target prices of $4,000 and $4,386.

Overall, the cryptocurrency market is experiencing concentrated pressure, with various scenarios playing out that could either hinder or stimulate potential recoveries. Investors should proceed cautiously as the market reveals its next moves.