Bitcoin has shown notable gains following recent U.S. actions in Venezuela, improving market sentiment among investors. Many altcoins have surged past resistance thresholds, hinting at a relief rally.

Key Highlights:

• Bitcoin reacted positively to U.S. involvement in Venezuela, boosting investor sentiment.
• Numerous altcoins are climbing above their near-term resistance, suggesting the beginning of a relief rally.

Bitcoin (BTC) advanced through the weekend and continued its recovery on Monday after the U.S. operation in Venezuela. The CoinMarketCap “Crypto Fear and Greed Index” shifted to neutral on Sunday, a sign of rising investor confidence. This index has primarily lingered in the “fear” or “extreme fear” zones since mid-October.

Additionally, it’s worth noting that Bitcoin has recorded only one negative monthly close in January since 2020. Historically, January has been favorable for Bitcoin, with an average gain of 3.92% since 2013, according to CoinGlass data. If this trend persists, Bitcoin could remain in the green at the start of the year.

Price Analysis

Data from TradingView.

Furthermore, institutional investors have turned optimistic in 2026, with Bitcoin exchange-traded funds seeing inflows of $471.3 million last Friday, marking the highest inflow since November 11, which had seen $524 million.

S&P 500 Index Prediction

The S&P 500 Index (SPX) faced resistance around 6,945 on December 26 but has found support at its moving averages, indicating bullish tendencies.

SPX daily chart

This behavior signals that buyers view price dips as purchasing opportunities. If they successfully push prices above 6,945, the index could target 7,000 and aim for a further goal of 7,290.

US Dollar Index Prediction

The US Dollar Index (DXY) crossed above the 20-day EMA (98.46), though the long wick indicates selling pressure near the 50-day SMA (99.08).

DXY daily chart

If sellers can bring the price below the 98.03 support, it suggests the index could remain in the large range of 96.21 to 100.54 for several days.

Conversely, breaking above the 50-day SMA would signal strength, with the potential to challenge overhead resistance at 100.54.

Conclusion

The analysis of Bitcoin and major altcoins shows a positive trend amid market recoveries and investor optimism, with forecasts predicting potential upward movements in the crypto space.