Price analysis 2/13: SPX, DXY, BTC, ETH, BNB, XRP, DOGE, ADA, MATIC, SOL

February 13, 2023 Coin Telegraph

Bitcoin and major altcoins look vulnerable to a deeper correction after the crackdown on Paxos soured sentiment across the crypto market.

Bitcoin (BTC) and select altcoins are threatening to deepen their correction after reports emerged that the United States Securities and Exchange Commission (SEC) issued a Wells Notice to Paxos, alleging that the dollar-pegged Binance USD (BUSD) stablecoin is an unregistered security. Separately, Paxos has been ordered by the New York Department of Financial Services (NYDFS) to halt the issuance of BUSD.

After the crackdown on Kraken last week and now Paxos, the regulator’s actions may increase nervousness among crypto investors. FOX Business journalist Eleanor Terrett tweeted on Feb. 12 that “more Wells notices going out in the coming 2-3 weeks, I’m told.”

*Daily cryptocurrency market performance. Source:* *Coin360*

Volatility may remain high in the near term as market observers await the consumer price index data to be released on Feb. 14. Interestingly, Bitcoin has made a golden cross on the daily chart and a death cross on the weekly time frame.

This suggests that the medium-term trend remains negative but the short-term trend could be signaling a turnaround. Let’s study the charts to find out the critical support and resistance levels to watch out for.

SPX

The S&P 500 index (SPX) turned down from 4,200 on Feb. 2 and has reached the 20-day exponential moving average (4,057) on Feb. 10. This is an important level for the bulls to defend if they want to keep the recovery intact.

The 20-day EMA is sloping up gradually and the relative strength index (RSI) is in the positive territory, indicating a minor advantage to buyers. The bulls will try to push the price to the overhead resistance at 4,200.

This is an important level to keep an eye on because if bulls pierce this resistance, the index may rally to 4,300 and thereafter to 4,500.

If bears want to have the upper hand, they will have to pull the index below the 20-day EMA. That could sink the index to the uptrend line.

DXY

The U.S. dollar index (DXY) turned down from the resistance line on Feb. 7 but the bears could not sink the price below the 20-day EMA (103). This suggests a change in sentiment from selling on rallies to buying on dips.

The 20-day EMA has turned up and the RSI has risen into the positive territory, suggesting that bulls are making a comeback. If the price breaks and sustains above the resistance line, the short-term trend may turn positive. The index could then start its northward march to 106 and later to 108.

Instead, if the price turns down from the current level and breaks below the 20-day EMA, it will suggest that the index may extend its stay inside the wedge pattern for a few more days.

BTC/USDT

Bitcoin’s attempt to recover fizzled out at $22,090 on Feb. 12, indicating that bears are selling on every minor rise and not waiting for the price to reach the 20-day EMA ($22,241).

This increases the possibility of a break below $21,480. The downsloping 20-day EMA and the RSI in the negative zone indicate that the path of least resistance is to the downside. The next support is the 50-day simple moving average ($20,439).

If the price rebounds off this support, the bulls will attempt to drive the BTC/USDT pair above $21,480 and attack the 20-day EMA. Buyers will have to clear this hurdle to seize control and open the doors for a possible rally to $23,500.

ETH/USDT

Ether (ETH) is struggling to find its footing at the $1,500 support. The 20-day EMA ($1,567) has turned down and the RSI is in the negative territory, indicating that bears have the upper hand.

If the 50-day SMA ($1,483) fails to arrest the decline, the selling could accelerate and the ETH/USDT pair may fall to the solid support at $1,352. This level may attract aggressive buying by the bulls. If the price rebounds off it, the pair may oscillate between $1,352 and $1,680 for some time.

Another possibility is that the price turns up from the 50-day SMA and breaks above the 20-day EMA. The pair could then rally to $1,680, which remains the key level for the bulls to surmount.

BNB/USDT

BNB (BNB) faced rejection at $318 on Feb. 12, suggesting that bears are selling on rallies. The bears will try to strengthen their position further by dragging the price below the strong support at $280.

The 20-day EMA ($310) has started to turn down and the RSI is in the negative territory, indicating that bears are at an advantage. If the $280 level collapses, the BNB/USDT pair may witness aggressive selling. The next support is $250.

Conversely, if the price jumps up from $280, the bulls will again try to push the pair above $318. If they succeed, the pair could rise to the neckline of the developing inverse head and shoulders pattern.

XRP/USDT

The bulls failed to protect the 50-day SMA ($0.38), indicating a lack of demand at lower levels. XRP’s (XRP) next support is at $0.36.

The 20-day EMA ($0.39) has started to turn down and the RSI has slipped into the negative territory, indicating that bears have the edge.

Even if the price rebounds off $0.36, the bears will try to sell on rallies to the 20-day EMA. If the price turns down from this level, it will increase the likelihood of a break below $0.36. The XRP/USDT pair could then plunge to $0.33.

Alternatively, if the price turns up and rises above the 20-day EMA, the pair may remain stuck between $0.36 and $0.43 for a while longer.

DOGE/USDT

Dogecoin (DOGE) is witnessing a tough battle between the bulls and the bears near the moving averages. A minor positive is that the bulls have not allowed the price to sustain below the 50-day SMA ($0.08).

If buyers propel the price above the 20-day EMA, the DOGE/USDT pair could rise to the psychological resistance at $0.10. The bears are expected to protect the zone between $0.10 and $0.11 with vigor because if it is scaled, the pair could pick up momentum and skyrocket to $0.15.

Conversely, if the price sustains below the 50-day SMA, the bears will attempt to sink the pair to the critical support at $0.07. This level is likely to attract aggressive buying by the bulls.

ADA/USDT

The bulls tried to push Cardano (ADA) back above the 20-day EMA ($0.37) on Feb. 12 but the bears did not budge. This shows that the sellers are trying to gain the upper hand.

The bears yanked the price below the immediate support at $0.35, which paves the way for a potential drop to the 50-day SMA ($0.34) and then to the crucial support at $0.32. A break below this level will suggest that bears are back in the driver’s seat.

If bulls want to prevent a deep correction, they will have to quickly kick the price above the $0.38 resistance. If the price sustains above this level, the ADA/USDT pair could climb to $0.41 and thereafter to $0.44. This level is likely to pose a strong challenge for the bulls.

MATIC/USDT

Buyers tried to propel Polygon (MATIC) above the $1.30 overhead resistance on Feb. 12 but the bears held their ground. This may have tempted short-term traders to book profits, which dragged the price below the 20-day EMA ($1.17).

If the bears sustain the price below the 20-day EMA, the MATIC/USDT pair could plummet to the 50-day SMA ($1.05). The zone between $1.05 and $1 is likely to attract buyers.

Usually, after such a deep correction, the next leg of the uptrend may not start at once. The price could oscillate between $1.30 and $1.05 for a few days before starting the next trending move.

Another possibility is that the price turns up from the current level and rises to the overhead resistance at $1.35.

SOL/USDT

Solana (SOL) plunged below the 20-day EMA ($22.19) on Feb. 9 but the bears failed to pull the price below the 50-day SMA ($19.42) on Feb. 10. This shows that lower levels are attracting buyers.

The price turned down from the 20-day EMA on Feb. 13, indicating that bears are trying to establish their supremacy. If the price slides below the 50-day SMA, the selling could pick up and the SOL/USDT pair may collapse to $15.

Contrarily, if bulls drive the price above the 20-day EMA, the pair could rise to the overhead resistance at $28. This is an important level to keep an eye on because a break above it will signal a potential trend change.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Price analysis 2/6: SPX, DXY, BTC, ETH, BNB, XRP, DOGE, ADA, MATIC, DOT

February 6, 2023 Coin Telegraph

Binance Coin

The US dollar’s rise has put brakes on Bitcoin’s price recovery, but lower levels are likely to attract buyers for BTC and altcoins such as DOGE.

The United States dollar index (DXY) has started a strong recovery and its rise is putting pressure on Bitcoin (BTC) and the S&P 500 (SPX) index. The market participants will be keenly watching for any insights on future rate hikes when the Federal Reserve Chairman Jerome Powell speaks before the Economic Club of Washington on Feb. 7.

Meanwhile, Bitcoin’s 43% rebound in January has improved sentiment among small investors. Crypto analytics firm Santiment said that the number of Bitcoin addresses holding 0.1 Bitcoin or less soared by 620,000 to hit 39.8 million, the highest level since Nov. 19.

With the sentiment turning positive, traders usually buy the dips as they anticipate the uptrend to continue. However, some analysts believe that the dip buyers will get trapped and Bitcoin may fall to the $19,000 to $21,000 support zone or worse, witness a capitulation in the next few weeks.

Could the S&P 500 and the cryptocurrency markets witness profit booking in the short term? What are the critical support levels to watch out for? Let’s study the charts to find out.

SPX

The S&P 500 index soared above the 4,101 resistance on Feb. 1 but the bears are unlikely to give up without a fight. They will try to pull the price back above 4,101 and trap the aggressive bulls.

The onus is upon the bulls to try and protect the zone between 4,101 and the 20-day exponential moving average (4,033). If the price rebounds off this zone, the likelihood of a break above 4,200 increases. That could clear the path for a possible rally to 4,300 where the bears may again erect a strong barrier.

On the downside, the 20-day EMA is the crucial support to keep an eye on. A break and close below it will suggest that the bulls may be losing their grip, putting the index in danger of dropping to the uptrend line.

DXY

The U.S. dollar index made a strong comeback on Feb. 2, indicating aggressive buying at lower levels. Buyers maintained their momentum and pushed the price above the 20-day EMA (102) on Feb. 3.

The index could rally to the resistance line of the descending broadening wedge pattern where the bears will try to halt the recovery. This is an important level for the sellers to defend if they want to maintain the upper hand.

Alternatively, the bulls will have to push and sustain the price above the wedge to start a meaningful recovery to 108. The 20-day EMA is flattening out and the relative strength index (RSI) has jumped into the positive territory, indicating that the selling pressure may be reducing.

BTC/USDT

Bitcoin has pulled back to the crucial support zone between $22,800 and the 20-day EMA ($22,489). This is an important zone for the bulls to protect if they want to keep the uptrend intact.

If the price rebounds from here, the bulls will try to push the BTC/USDT pair above $24,255 and challenge the overhead resistance at $25,000. The bears are expected to guard this level with all their might because a break and close above $25,000 could signal that the bear market is over for goo.

On the contrary, a deeper pullback comes into play if the price turns down and breaks below the 20-day EMA. The important levels to watch on the downside are $21,480 and the 50-day simple moving average ($19,697).

ETH/USDT

Ether (ETH) remains sandwiched between the 20-day EMA ($1,591) and the overhead resistance at $1,680. This tight-range trading is unlikely to continue for long and a breakout may happen soon.

If the price plummets below the 20-day EMA, the ETH/USDT pair could continue lower and reach $1,500. This level may attract buyers and a bounce off it will keep the pair inside the $1,500 to $1,680 range for a few days.

The bears must then sink the price below $1,500 to gain the upper hand. The pair could then start a deeper correction to $1,352. On the other hand, buyers will have to propel the pair above $1,680 to start a rally to $1,800, and thereafter to $2,000.

BNB/USDT

Buyers pushed BNB’s (BNB) price above the $335.50 resistance on Feb. 5. But the long wick on the candlestick shows that bears are selling at higher levels. The price pulled back to the breakout level of $318 where the bulls are buying aggressively as seen from the long tail on the Feb. 6 candlestick.

The bears will have to sink the price below the 20-day EMA ($312) to clear the path for a decline to the 50-day SMA ($281).

Conversely, if the price turns up from the current level and breaks above $338, it will suggest that the bulls have flipped the $318 level into support. The BNB/USDT pair will then likely resume the rally and reach $360. This level should provide solid resistance but if the bulls clear it, the next big hurdle will be $400.

XRP/USDT

The failure of the bulls to drive XRP’s (XRP) price above $0.42 on Feb. 4 shows that bears are fiercely guarding this level. The emboldened bears pulled the price below the 20-day EMA ($0.40) on Feb. 5.

The price action of the past few days has flattened the 20-day EMA and the RSI has also slipped near the midpoint, indicating a balance between supply and demand. That could keep the pair range-bound between $0.37 and $0.42 for some time.

If bulls want to establish their dominance, they will have to thrust the price above the $0.42 to $0.44 resistance zone. If they do that, the XRP/USDT pair has a chance at reaching $0.51. Contrarily, if bears sink the price below $0.37, the selling could intensify and the pair risks dropping toward $0.32.

DOGE/USDT

The bulls again tried to clear the overhead hurdle at $0.10 on Feb. 4 but the bears held their ground. This pulled Dogecoin (DOGE) back to the 20-day EMA ($0.09) on Feb. 5.

The DOGE/USDT pair is stuck between the 20-day EMA and $0.10 for the past few days. Usually, tight ranges resolve with a sharp range breakout but it is difficult to predict the direction with certainty.

As the 20-day EMA is sloping up and the RSI remains in the positive zone, the bulls have a slight edge. If they push the pair above $0.10, the next stop could be $0.11. This level may act as an obstacle but if the bulls clear it, DOGE price may reach $0.15.

This positive view will be invalidated in the near term if the price tumbles below the 20-day EMA. The pair may then reach the 50-day SMA ($0.08).

ADA/USDT

The long tail on Cardano’s (ADA) Feb. 5 candlestick shows that buyers are trying to flip the $0.38 level into support.

If buyers want to strengthen their position, they will have to quickly kick the price above the overhead resistance at $0.42. If they succeed, the ADA/USDT pair could extend its up-move to $0.44. This level may behave as a formidable resistance on the way up but as long as the price sustains above the 20-day EMA, bulls remain in control.

For the bears to regain the upper hand, they will have to sink the price below the 20-day EMA. That could tempt short-term bulls to book profits, putting Cardano price in danger of collapsi to the 50-day SMA ($0.32).

MATIC/USDT

The long wick on Polygon’s (MATIC) Feb. 4 candlestick shows that traders may have booked profits near the overhead resistance at $1.30.

The upsloping 20-day EMA ($1.11) and the RSI in the positive area indicate that buyers are in command. The possibility of a break above $1.30 increases the price turns up from the current level or the 20-day EMA, which could propel MATIC price to as high as $1.70.

One minor negative on the chart is the negative divergence on the RSI. This indicates that the buying pressure is reducing. If the bears sink the price below the 20-day EMA, MATIC may fall to $1.05 and then to the 50-day SMA ($0.93).

DOT/USDT

Buyers are trying to protect the breakout level at the resistance line but are facing selling on rallies. The RSI is showing a negative divergence but a minor positive is that the bulls have managed to keep Polkadot (DOT) above the 20-day EMA ($6.33).

The bulls will try to propel the price above the overhead resistance at $7.13 and resume the up-move. The next stop could be $7.42 where the bulls are likely to face strong selling pressure. If buyers do not give up much ground from $7.42, the DOT/USDT pair should have a good chance of climbing toward $8.

Contrary to this assumption, if the bears tug the price below the 20-day EMA, it will signal the start of a deeper correction. The support level to watch in the event of a pullback is $6. But if it fails to hold, the decline can extend to as low as the 50-day SMA ($5.43).

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Price analysis 1/30: SPX, DXY, BTC, ETH, BNB, XRP, DOGE, ADA, MATIC, DOT

January 30, 2023 Coin Telegraph

Binance Coin

Bitcoin and altcoins started the week in the red, but if this week’s FOMC meeting aligns with investors’ general expectations, the wider crypto market could quickly rebound.

Traders tend to lighten up positions before important events because they hate uncertainty. The United States Federal Reserve’s policy decision is on Feb. 1, where the central bank is expected to hike rates by 25 basis points.

Market observers will keenly watch for any hints about how high the rates could go. That could be one of the reasons for the profit-booking in Bitcoin (BTC) and select altcoins on Jan. 30.

Bitcoin’s sharp recovery in January could also be signaling the start of a new bull market, according to certain on-chain metrics. The Profit and Loss Index from on-chain analytics platform CryptoQuant has given its first buy signal since 2019.

Blockware Solutions head analyst Joe Burnett believes that Bitcoin will not break above its all-time high of $69,000 until the next Bitcoin halving which is scheduled to occur in March 2024. Burnett anticipates Bitcoin’s next bull market top to be between $150,000 to $350,000, which isa massive increase from the current levels.

What are the important support levels to watch out for in Bitcoin and the altcoins? Let’s study the charts to find out.

SPX

After several failed attempts, the S&P 500 closed above the downtrend line on Jan. 26. However, the bears are not willing to surrender without a fight.

The sellers are trying to halt the recovery at 4,101, but the up-sloping 20-day exponential moving average (3,972) and the relative strength index (RSI) in positive territory indicates that the path of least resistance is to the upside. If buyers thrust the price above 4,101, the index could start its journey toward 4,325.

Alternatively, if the bears yank the price below the moving averages, several aggressive bulls may get trapped and the index could then tumble to 3,764.

DXY

The U.S. dollar index (DXY) is falling inside a descending broadening wedge pattern but the bulls are trying to protect the support at 101.29.

The bounce could face selling at the 20-day EMA (102.63) because bears defended this level during downtrends. If the price turns down from the 20-day EMA, the likelihood of a break below 101.29 increases. That could tug the index to the psychologically crucial level of 100.

On the contrary, if the index rises above the 20-day EMA, it will suggest strong demand from the bulls. The index could then rise toward the resistance line of the wedge. The bulls will have to clear this hurdle to suggest that the short-term downtrend may have ended.

BTC/USDT

Bitcoin rose above the resistance at $23,816 on Jan. 29 but the bulls could not build upon the momentum on Jan. 30. That may have tempted short-term traders to book profits and the price has dropped down toward $22,800.

If the price rebounds off $22,800, it will suggest that bulls have flipped the level into support. That could increase the likelihood of a rally to $25,211. Sellers are likely to guard this level with all their might because if $25,211 is conquered, the BTC/USDT pair could dash toward the $30,000 to $32,000 zone.

On the other hand, if bears pull the price below $22,800, the correction could deepen to the 20-day EMA ($21,716) and then to the psychological support at $20,000.

ETH/USDT

Ether (ETH) once again reached near the overhead resistance at $1,680 but the bulls could not overcome this obstacle. That means the price remains stuck between the 20-day EMA ($1,540) and $1,680.

If the price rebounds off the 20-day EMA, it will suggest strong buying on dips. The bulls will then again try to thrust the price above $1,680. If they succeed, the ETH/USDT pair could rally toward $2,000 with a brief stop near $1,800.

Contrary to this assumption, if the price turns down and tumbles below the 20-day EMA, it could attract profit-booking by the short-term bulls. The pair could then decline to the 50-day SMA ($1,365), which may act as a strong support.

BNB/USDT

BNB (BNB) touched the strong resistance of $318 on Jan. 29 but the bulls could not overcome this barrier. This indicates that bears are fiercely defending the level.

The immediate support on the downside is the 20-day EMA ($298). Although the upsloping 20-day EMA suggests advantage to buyers, the negative divergence on the RSI indicates that the positive momentum could be weakening. The selling could accelerate on a break below the 20-day EMA and the BNB/USDT pair could slide to $280.

Contrarily, if the price turns up from the 20-day EMA, the bulls will again attempt to drive the pair above $318. If they manage to do that, the pair could soar to $360.

XRP/USDT

XRP’s (XRP) price is getting squeezed between the 20-day EMA ($0.40) and the overhead resistance at $0.42.

Usually, a tight consolidation near the overhead resistance gives an edge to the buyers but when the bulls fail to surpass the hurdle even after repeated attempts, some traders may book profits.

That could start a deeper correction and in this case, a break below the 20-day EMA could open the doors for a drop to the 50-day SMA ($0.37).

If bulls want to maintain their dominance, they will have to quickly kick the XRP/USDT pair above the $0.42 to $0.44 resistance zone. That could start a rally to $0.51.

DOGE/USDT

The bears are not allowing Dogecoin (DOGE) to sustain above $0.09 and the bulls are not letting it dip below the 20-day EMA ($0.08).

If the price turns up from the current level, the bulls will again try to force the DOGE/USDT pair above $0.09. If they can pull it off, the pair could soar to $0.11 where the bears may again mount a strong defense.

Conversely, if the price breaks below the 20-day EMA, the next stop could be the 50-day SMA ($0.08). This level could act as a minor support but if bears sink the price below it, the pair could collapse to the critical support near $0.07.

ADA/USDT

After trading above the $0.38 resistance for three days, Cardano (ADA) dropped below the breakout level on Jan. 30. This indicates that bears are active at higher levels.

The rising 20-day EMA ($0.36) indicates advantage to buyers but the negative divergence on the RSI warns that the bulls may be losing their grip. The bears will try to yank the price to the 20-day EMA, which is an important level to keep an eye on in the near term.

If the price plummets below the 20-day EMA, the selling could increase and the ADA/USDT pair may fall to $0.32.

Contrarily, if buyers want to maintain their dominance, they will have to quickly thrust the price above $0.40. The pair could then travel to $0.44.

MATIC/USDT

Polygon’s (MATIC) up-move met with heavy selling near $1.20 on Jan. 29. The price could retest the breakout level of $1.05, which is an important level to keep an eye on.

If the price springs back from $1.05, it will signal that bulls have flipped the level into support. The buyers will then try to propel the price above $1.20 and challenge the strong resistance near $1.30.

On the other hand, if the price dives below the 20-day EMA ($1.02), it will suggest that the breakout above $1.05 may have been a bull trap. The MATIC/USDT pair could then tumble to the 50-day SMA ($0.89).

DOT/USDT

Polkadot (DOT) has been struggling to sustain above the resistance line for the past few days, which indicates that bears are fiercely defending this level.

The sellers will try to pull the price back below the 20-day EMA ($6). If they manage to do that, it could tilt the near-term advantage in favor of the bears. The DOT/USDT pair could then decline to $5.50 and later to the 50-day SMA ($5.20).

Conversely, if the price bounces off the 20-day EMA, the bulls will try to clear the overhead zone between the resistance line and $6.84. If that happens, the pair could rally toward $8. There is a minor support at $7.42 but that is likely to be crossed.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Market Strategist Warns of ‘Blood’ on February 1 Ahead of Fed Meeting

January 29, 2023 Bitcoin.com

Price analysis 1/23: SPX, DXY, BTC, ETH, BNB, XRP, DOGE, ADA, MATIC, DOT

January 23, 2023 Coin Telegraph

Binance Coin

The rally in stocks could be giving Bitcoin price a boost, and the crypto market could see more fireworks if the Fed confirms investors' expectation that rate hikes will slow down.

Bitcoin’s (BTC) price has risen about 37% year-to-date and is not showing any signs of slowing down. The S&P 500 index (SPX) has also made a winning start to the year but has seen a relatively muted rally of roughly 4%.

While the price of risky assets are rising, the United States dollar index (DXY), perceived as a safe haven, extended its downtrend and declined more than 1% in January.

The change in sentiment toward risky assets may have been triggered by expectations that the U.S. Federal Reserve could slow down its rate hikes as inflation cools off. Some analysts even expect the Fed to pivot and start cutting rates before the end of the year.

Several analysts remain skeptical about Bitcoin’s rally but the longer the price sustains above $20,000, the greater the possibility that the macro low may have been made in November. If the next decline forms a higher low, it could further confirm that the worst may be behind us.

Could the rally in Bitcoin and altcoins witness profit booking in the next few days? Let’s study the charts to find out.

SPX

The S&P 500 reversed direction from the downtrend line on Jan. 18 and plunged below the moving averages on Jan. 19 but the bears could not sustain the lower levels.

The bulls purchased the dip on Jan. 20 and pushed the price back above the moving averages. Buyers built upon this strength and are trying to clear the overhead obstacle at the downtrend line on Jan. 23. If they manage to do that, it will suggest a potential trend change. The index may soar to 4,325 with a minor pit stop at 4,100.

Contrary to this assumption, if the index fails to sustain above the downtrend line, it will suggest that bears are active at higher levels.

A break below 3,885 could tilt the short-term advantage in favor of the sellers. The index may then decline to 3,764.

DXY

The U.S. dollar index (DXY) continues to be in a downtrend. Buyers tried to start a recovery on Jan. 18 but the bears did not relent.

The downsloping moving averages and the RSI in the negative territory indicate that bears are firmly in the driver’s seat. Buyers may try to defend the support line of the descending broadening wedge pattern but could face strong selling at the 20-day EMA (103).

On the downside, buyers are likely to guard the psychological level of 100 because if this support cracks, the selling could intensify and the index may tumble to 97.

The first sign of strength will be a break above the 20-day EMA. That could open the doors for a possible rally to the resistance line of the wedge.

BTC/USDT

The bulls pushed Bitcoin above $22,800 on Jan. 21 and Jan. 22 but the long wick on the candlesticks shows that bears are selling at higher levels. The bears tried to start a correction on Jan. 22 but the bulls purchased the intraday dip as seen from the long tail on the candlestick.

Although the upsloping moving averages indicate advantage to buyers, the RSI in the overbought territory cautions that a minor correction or consolidation is possible. For that to happen, the bears will have to pull and sustain the price below $22,292. The BTC/USDT pair could then slide to $21,480.

Conversely, if buyers propel the price above the $23,078 to $23,371 resistance zone, the pair could accelerate to $25,211. The bears may mount a strong defense at this level, which could lead to a short-term correction.

ETH/USDT

Ether’s (ETH) price is facing rejection at $1,680 but a positive sign is that the bulls have not ceded ground to the bears. This suggests that the short-term traders are holding their positions as they anticipate the up-move to continue.

The rising 20-day EMA ($1,483) and the RSI in the overbought territory suggest the path of least resistance is to the upside.

A break and close above $1,680 could start the journey to $1,800. This level may again act as a resistance but if bulls do not allow the price to slip below $1,680 during the next pullback, the likelihood of a rally to $2,000 increases.

This positive view could invalidate in the near term if the price turns down from the current level and slumps below the 20-day EMA. The ETH/USDT pair could then remain range-bound between $1,352 and $1,680 for some time.

BNB/USDT

BNB’s (BNB) relief rally is facing selling near the overhead resistance at $318 but the bulls have not ceded ground to the bears. This suggests that buyers are not rushing to the exit as they expect the price to rise above $318.

The upsloping 20-day EMA ($287) and the RSI in the positive zone indicate that bulls have the upper hand. If buyers thrust the price above $318, the BNB/USDT pair could accelerate to $360 as there is no major resistance in between.

If the price turns down sharply from the current level, the pair could drop to the 20-day EMA. This level may attract strong buying by the bulls. If the price rebounds off the 20-day EMA, the buyers will again try to clear the overhead hurdle at $318 and resume the uptrend. The short-term advantage could tilt in favor of the bears on a break below the 50-day simple moving average ($269).

XRP/USDT

After a shallow two-day pullback, buyers pushed XRP (XRP) above the stiff overhead resistance at $0.42 on Jan. 23. This indicates that every minor fall is being purchased.

The 20-day EMA ($0.38) is sloping up and the RSI is near the overbought region, indicating that bulls are in command. However, the bears may not surrender easily and will try to defend the $0.42 level with all their might because if this level gives way, the XRP/USDT pair could quickly jump to $0.51.

If the price fails to sustain above $0.42, the bears will try to pull the pair below $0.39. If that happens, the possibility of a break below the 20-day EMA increases.

DOGE/USDT

Dogecoin (DOGE) continues to face selling above $0.09 but the bulls are not willing to abandon their effort.

The moving averages have completed a bullish crossover and the RSI is in the positive territory, indicating advantage to buyers. If the price sustains above $0.09, the DOGE/USDT pair could surge to $0.11. This level may act as a formidable barrier and the bulls may find it difficult to ascend it in the near term.

If the price fails to sustain above $0.09, short-term traders may book profits and that could sink the pair below the moving averages. The pair may then decline to the support near $0.07.

ADA/USDT

Cardano (ADA) continues to move up gradually but the bears are trying to stall the recovery near $0.38. If the price turns down from the current level, it could slump to the 20-day EMA ($0.33).

This is an important level to watch out for because a strong rebound off the 20-day EMA will suggest a change in sentiment from selling on rallies to buying on dips. The bulls will then make another attempt to overcome the barrier at $0.38. If they are successful, the ADA/USDT pair could soar to $0.44.

If bears want to gain the upper hand in the near term, they will have to yank the price below the 20-day EMA. The pair could then decline to the 50-day SMA ($0.29).

MATIC/USDT

The bulls tried to propel Polygon (MATIC) above the overhead resistance of $1.05 on Jan. 21 but the bears did not budge. Although the bears have successfully defended $1.05 in the past few days, they have not been able to tug the price below the 20-day EMA ($0.93).

The upsloping 20-day EMA and the RSI in the positive zone suggest that bulls have a slight edge. The repeated retest of a resistance level tends to weaken it. If the price turns up from the current level, the prospects of a break above the overhead resistance improve. The MATIC/USDT pair could then jump to $1.16 and thereafter to $1.30.

Contrarily, if the price turns down from the current level, the bears will sense an opportunity and try to drag the pair below the 20-day EMA. If they can pull it off, the pair may remain stuck inside the $0.69 to $1.05 range for a while longer.

DOT/USDT

Polkadot (DOT) formed a Doji candlestick pattern on Jan. 21 and Jan. 22, indicating indecision among the bulls and the bears about the next move.

That uncertainty resolved to the upside on Jan. 23 with a break above $6.50. If buyers sustain the price above this level, the DOT/USDT pair could first rise to $7.42 and if this level is taken out, the rally could touch $8. The upsloping moving averages and the RSI in the overbought territory indicate that bulls are in control.

The important level to watch on the downside is the 20-day EMA ($5.63). Sellers will have to sink the price below this support if they want to make a comeback.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin price surge: Breakthrough or bull trap? Pundits weigh in

January 23, 2023 Coin Telegraph

Bankruptcy

Bitcoin nearly broke its record for the longest streak of daily green price candles this month, but many believe its recent surge could be short-lived.

While Bitcoin (BTC) has experienced a strong price pump to kick off the new year, many industry pundits are not convinced the cryptocurrency will continue its upward trajectory — at least in the short to mid-term.

The impressive price surge — which saw BTC experience 14 days of consecutive price increases earlier this month — has called on many to consider whether the surge marks a significant “breakthrough” or is indicative of a “bull trap."

Speaking to Cointelegraph on Jan. 23, James Edwards, a cryptocurrency analyst at Australian-based fintech firm Finder said the argument for a “bull trap” is stronger, warning the recent surge could be “short-lived.”

He stated that while the BTC price moved upwards over the weekend, the NASDAQ Composite and the S&P 500 also made similar rallies:

"This suggests to me that the rally in crypto is not unique, and instead part of a wider market uplift as inflation figures stall and a risk-on appetite appears to return to investments. So Bitcoin is just enjoying the effects of positive sentiment that originated elsewhere. This is likely to be short-lived.”

Edwards added that cryptocurrency markets still have some “significant hurdles to clear before a new bull market can begin.”

Among those obstacles, he mentioned include the continued fallout over FTX’s collapse and the recent Chapter 11 filing by Genesis on Jan. 19.

"As such, we're going to see further sell-offs and downsizing as crypto firms adjust their balance sheets and dump tokens onto the market to cover debt and try to stay afloat,” he explained.

In a statement to Cointelegraph, Bloomberg Intelligence Senior Commodity Strategist Mike McGlone wasn’t confident in the BTC price trajectory either, citing recessionary-like macroeconomic conditions as too big of a barrier for BTC to overcome.

“With the world leaning into recession and most central banks tightening, I think the macroeconomic ebbing tide is still the primary headwind for Bitcoin and crypto prices.”

The sentiment was also shared among some on Crypto Twitter, with cryptocurrency analyst and swing trader “Capo of Crypto” telling his 710,000 Twitter followers on Jan. 21 that BTC’s push past resistance looks like “the biggest bull trap” he has ever seen:

I've been checking charts all this time, avoiding noise from Twitter. The way the upward movement is happening, the way htf resistances are being tested... it clearly looks manipulated, no real demand.

Once again, the biggest bull trap I've ever seen. But they won't trap me.
— il Capo Of Crypto (@CryptoCapo_) January 21, 2023

However, not all industry pundits were as bearish.

Cryptocurrency market analysis platform IncomeSharks appeared bullish, having shared a “Wall St. Cheat Sheet” chart to its 379,300 Twitter followers on Jan. 22 making a mockery of the “Bears” who think the latest price movements are indicative of a “bull trap.”

#Bears at the Denial stage. "It's just a bull trap" "It's all manipulation". Waiting for the Panic part next... pic.twitter.com/Lo6nWyZPD2
— IncomeSharks (@IncomeSharks) January 22, 2023

Sem Agterberg, the CEO and co-founder of AI-based trading bot CryptoSea also recently shared a flood of posts expressing positive sentiment towards BTC price action to his 431,700 Twitter followers, suggesting that a “BULL FLAG BREAKOUT” towards $25,000 may soon be on the cards:

Meanwhile, others have refrained from making a forecast on the price, likely given the unpredictability of crypto markets.

Here's my technical analysis of where Bitcoin's price is going. pic.twitter.com/cOFueErgGq
— Dan Held (@danheld) January 21, 2023

Bitcoin (BTC) is currently priced at $22,738, while the Bitcoin Fear and Greed Index is currently at “Neutral” with a score of 50 out of 100, according to Alternative.me.

The cryptocurrency managed to break out of the “Fear” zone on Jan. 13 — which was then scored at 31 — after the BTC price increased for seven consecutive days.

*Market sentiment of Bitcoin expressed on a 0-100 “Fear & Greed Index” scale. Source:* *Alternative.me.*

All Eyes on the Next Fed Meeting: Market Trajectories Hinge on Decision

January 21, 2023 Bitcoin.com

Price analysis 1/17: SPX, DXY, BTC, ETH, BNB, XRP, DOGE, ADA, MATIC, DOT

January 17, 2023 Coin Telegraph

Binance Coin

Bitcoin’s chart shows a tug-of-war between bulls and bears, and this is having a slight impact on the upward price action of most altcoins.

Risk assets have started the new year on a strong note. The S&P 500 (SPX) and the Nasdaq closed in the positive for the second successive week and also notched their best weekly performance since November.

Bitcoin (BTC) led the recovery in the crypto markets with a sharp 21% rally last week. That sent the Bitcoin Fear and Greed Index into the neutral territory of 52 on Jan. 15, its highest since April 5, 2022. However, the index has given back its gains and is again back into the Fear zone on Jan. 17.

The strong rally in Bitcoin has divided analysts' opinions. While some expect the rally to be a bull trap, others believe that the up-move could be the start of a new bull market. The confirmation of the same will happen during the next dip. If the cryptocurrencies form a higher low followed by a higher high, it will suggest that the downtrend could be over.

Could the S&P 500 extend its rally? What are the critical levels on BTC and the cryptocurrencies to watch out for? Let’s study the charts to find out.

SPX

The S&P 500 continued its recovery last week and has reached the downtrend line. The 20-day exponential moving average (3,904) has started to turn up and the relative strength index (RSI) is in the positive territory, indicating advantage to the buyers.

The bulls will have to thrust and sustain the price above the downtrend line to signal a potential trend change. The bears may try to stall the up-move in the 4,100 to 4,120 zone but if bulls overcome this resistance, the index could rally to 4,200 and then 4,325.

If bears want to prevent this change in trend, they will have to quickly pull the price below the moving averages. If they do that, it will suggest that higher levels are attracting sellers. The index could then slide to 3,764.

DXY

The U.S. dollar index (DXY) has been falling inside a descending broadening wedge pattern for the past few days. Buyers are trying to protect the support line of the wedge.

The relief rally could reach the 20-day EMA (103), which could act as a strong barrier. If the price turns down from this level, it will suggest that the sentiment remains negative and traders are selling on minor rallies. The bears will then try to resume the downtrend and sink the price to the psychological support at 100.

Contrarily, if buyers propel the price above the 20-day EMA, the index could march toward the resistance line of the wedge. The 50-day SMA (105) is placed close to the resistance line, hence the bears are likely to mount a strong defense at this level.

BTC/USDT

Buyers are trying to pierce the overhead resistance at $21,480 and extend the recovery in Bitcoin but the bears are in no mood to relent. The RSI remains in deeply overbought territory, indicating a possible consolidation or correction in the near term.

The immediate support on the downside is the psychological level of $20,000 and then the 38.2% Fibonacci retracement level of $19,489. If the price turns up from this zone, it will suggest that traders are viewing the dips as a buying opportunity.

Buyers will then make one more attempt to drive the price above $21,500. If they succeed, the BTC/USDT pair could start the next leg of the up-move. The pair could then rise to $22,800 and later make a dash to $25,211.

Contrarily, if the price breaks below $19,489, the pair could plummet to the breakout level of $18,388.

ETH/USDT

Ether’s (ETH) recovery met with strong resistance at $1,600 on Jan. 14 but the bulls are not ceding ground to the bears. This suggests that the bulls expect the up-move to continue after a brief pause.

If the price consolidates in a tight range near $1,600, it will enhance the prospects of a break above the overhead resistance. The ETH/USDT pair could then climb to $1,700 and later to $1,800.

Alternatively, if the price turns down and breaks below $1,516, the pair could witness profit booking. The pair could then slump to the 38.2% Fibonacci retracement level of $1,439 and thereafter to the 20-day EMA ($1,362). This zone could attract strong buying by the bulls.

BNB/USDT

BNB (BNB) reached the overhead resistance at $318 on Jan. 14. The long wick on the day’s candlestick shows that the bears are trying to protect the level.

However, the rising 20-day EMA ($276) and the RSI near the overbought zone suggest that bulls have the upper hand. If the price turns up from the current level or the 20-day EMA, the bulls will strive to drive the BNB/USDT pair to $338. A break above this resistance could signal the start of a new up-move.

On the contrary, if the price turns down sharply and breaks below the moving averages, it will suggest that the pair may stay inside the range between $220 and $320 for a few more days.

XRP/USDT

XRP (XRP) soared above the triangle and the moving averages on Jan. 11 but the bulls have failed to start a strong up-move. This shows a lack of demand at higher levels.

The long wick on the Jan. 16 candlestick shows that bears are selling near the overhead resistance at $0.42. If the price turns down and breaks below the moving averages, it will keep the pair stuck between $0.32 and $0.42 for some time.

If bulls want to keep their chances alive, they will have to aggressively buy the pullback to the 20-day EMA ($0.36). If the price rebounds off this level, the XRP/USDT pair could retest $0.42. If this level gets taken out, the pair could soar to $0.51.

DOGE/USDT

Dogecoin (DOGE) jumped above the 50-day SMA ($0.08) on Jan. 13 but the bulls could not capitalize on this strength. The long wick on the Jan. 14 candlestick shows that bears are selling above $0.09.

The bears will try to pull the price back below the moving averages. If they manage to do that, it will point to a possible range-bound action in the near term.

On the other hand, if the price rebounds off the moving averages with strength, it will indicate a shift in sentiment from selling on rallies to buying on dips. The bulls will then again try to drive the price above $0.09 and catapult the DOGE/USDT pair to $0.11. This level may again act as a strong barrier.

ADA/USDT

The strong relief rally in Cardano (ADA) is facing profit-booking near $0.37. The overbought levels on the RSI point to a minor correction or consolidation in the short term.

The ADA/USDT pair could turn down and slump to the 20-day EMA ($0.30). If buyers want to continue the recovery, they will have to defend this level aggressively. If the price bounces off the 20-day EMA with strength, it will increase the likelihood of a break above $0.37. The pair could then continue its northward march toward $0.44.

This positive view could invalidate in the near term if the price turns down and plummets below the moving averages. Such a move will imply that bears are back in command.

MATIC/USDT

Polygon (MATIC) touched the $1.05 overhead resistance level on Jan. 14 but the long wick on the candlestick indicates that the short-term traders may have booked profits.

Buyers again tried to overcome the obstacle on Jan. 16 but the bears thwarted their attempts as seen from the long wick on the candlestick. The sellers will try to pull the price down to the moving averages, which is an important level to watch out for.

If the price springs back from the moving averages, it will indicate that lower levels are attracting buyers. The bulls will then try to kick the price above $1.05. If they succeed, the MATIC/USDT pair could surge to $1.30.

On the contrary, if the price collapses below the moving averages, it will suggest that the pair may remain inside the $0.69 to $1.05 range for a while longer.

DOT/USDT

Polkadot (DOT) skyrocketed above the downtrend line on Jan. 14 but higher levels seem to have attracted selling as seen from the long wick on the day’s candlestick.

The DOT/USDT pair formed an inside-day candlestick pattern on Jan. 15, which resolved to the downside on Jan. 16. This suggests that the failure to sustain above the downtrend line may have tempted short-term traders to book profits.

The first support on the downside is $5.40 and below that is the 20-day EMA ($5.10). If the price rebounds off this zone, the bulls may again try to push and sustain the pair above the downtrend line. The bullish momentum could pick up above $6.50 while the bears may be back in control if the pair dives below the moving averages.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Price analysis 1/9: SPX, DXY, BTC, ETH, BNB, XRP, DOGE, ADA, MATIC, LTC

January 9, 2023 Coin Telegraph

Binance Coin

DXY is cooling off and crypto and equities are starting to heat up. Cointelegraph explores how BTC and altcoins could react to the current bullish momentum in the market.

Investors across asset classes have been keeping a close watch on the United States Federal Reserve’s monetary policy because that sets the stage for a risk-on or a risk-off environment.

The strong rally in the U.S. stock markets on Jan. 6 and in cryptocurrencies over the weekend suggests that market observers anticipate the Fed to slow down its frantic pace of rate hikes. The optimism was fuelled by the greater-than-expected slowdown in wage gains in the December jobs report and the first contraction in U.S. services industry activity since May 2020. The next trigger that may influence the markets could be the Consumer Price Index data due on Jan. 12.

While the cryptocurrency markets may benefit from a risk-on environment, the extent of the up-move may be limited because of the issues plaguing Digital Currency Group. Therefore, along with the macroeconomic data, crypto traders must keep an eye on the news specific to the crypto space.

Could the strength in the S&P 500 (SPX) and the weakness in the U.S. dollar index (DXY) boost crypto prices higher? Let’s study the charts to find out.

SPX

After consolidating in a range for several days, the S&P 500 index broke above the 20-day exponential moving average (3,875) on Jan. 6. This suggests that the uncertainty has resolved in favor of the buyers.

The bulls will try to strengthen their position by pushing the price to the downtrend line. This is an important level to keep an eye on because a break and close above it could signal a potential trend change. The index could then rally to 4,100 and later to 4,325.

Contrary to this assumption, if the index turns down from the current level or the overhead resistance, it will suggest that bears continue to sell on relief rallies. The bears will be back in the game if the price dips below the 20-day EMA.

DXY

The bulls pushed the price above the important resistance of 105 on Jan. 5 but they could not sustain the recovery on Jan. 6. This suggests that the bears continue to sell on rallies. The price turned down sharply and dipped back below the 20-day EMA (104).

The selling continued on Jan. 9 and the bears have yanked the price below the immediate support near 103.39. If bears sustain the lower levels, it will signal the start of the next leg of the downtrend. The index could dive to 102 and then to the psychologically crucial level at 100.

Alternatively, if the price turns up sharply and rises above 103.39, it will suggest demand at lower levels. Buyers will then try to push the pair toward 105.82. A break and close above this resistance could tilt the short-term advantage in favor of the bulls.

BTC/USDT

Bitcoin (BTC) broke above the resistance of the $16,256 to $17,061 range on Jan. 8, indicating that the uncertainty has resolved in favor of the buyers.

If bulls sustain the breakout level and succeed in flipping $17,061 into support, the BTC/USDT pair may start its northward march toward the overhead resistance at $18,388. This level could act as a major obstacle.

If the price turns down sharply from $18,388, it will suggest that the BTC/USDT pair may oscillate inside the large range between $16,256 and $18,388 for a while longer.

The short-term advantage could tilt in favor of the bears if they pull the price back below the moving averages.

ETH/USDT

Ether (ETH) has been gradually rising toward the overhead resistance at $1,352. The downtrend line is placed just above this level, hence the bears will try to defend it with all their might.

If buyers do not give up much ground from the overhead resistance, it will increase the likelihood of a breakout above the downtrend line. If that happens, it will suggest that the decline could be over. The ETH/USDT pair could first rally to $1,700 and thereafter to $1,800.

Contrary to this assumption, if the price turns down from $1,352 and slides below the moving averages, it will indicate that traders are selling near the resistance. That could keep the pair stuck inside the range between $1,150 and $1,352 for a few more days.

BNB/USDT

BNB (BNB) continued its up-move and soared above the 50-day simple moving average ($268) on Jan. 8. This suggests strong demand at higher levels.

The 20-day EMA ($258) has started to turn up and the RSI is in the positive zone, indicating that the bulls have the upper hand. The BNB/USDT pair could rally to $300 and then jump to $318. This zone is likely to attract strong selling by the bears.

On the way down, the first support is at the 50-day SMA and then at the 20-day EMA. A break below the moving averages could signal that the bears are back in the driver’s seat. The pair could then tumble to $250.

XRP/USDT

The bears repeatedly failed to sustain the price below the support line of the symmetrical triangle in the past few days. This indicates that traders bought the dip in XRP (XRP).

The bulls will try to propel the price to the resistance line of the triangle. This is an important level to keep an eye on because a break and close above it could suggest the start of a new up-move. The XRP/USDT pair could then rally to $0.42 and later to the pattern target of $0.46.

Contrarily, if the price turns down from the current level or the resistance line, it will suggest that the pair may continue to trade inside the triangle. The bears will have to sink and sustain the price below the triangle to gain the upper hand.

DOGE/USDT

Dogecoin’s (DOGE) tight range trading resolved to the upside with a break above the 20-day EMA ($0.07) on Jan. 9. The price could next reach the 50-day SMA ($0.08) where the bears may pose a strong challenge.

If the price turns down from the 50-day SMA but rebounds off the 20-day EMA, it will suggest that bulls are buying on dips. That could improve the prospects of a break above the 50-day SMA. The DOGE/USDT pair could then accelerate toward $0.11.

On the contrary, if the price turns down and breaks below the 20-day EMA, the bears will again try to sink the pair below the support near $0.07. If they manage to do that, the pair could start a downward move to $0.05.

ADA/USDT

Cardano (ADA) continued its strong recovery and broke above the 50-day SMA ($0.29) on Jan. 8. That was followed by another sharp rally on Jan. 9, which took the price above the downtrend line of the falling wedge pattern.

The 20-day EMA ($0.27) has started to turn up and the RSI has jumped into the overbought territory, indicating that bulls are in command. If buyers sustain the price above the wedge, the ADA/USDT pair could soar to $0.44.

However, the long wick on the Jan. 9 candlestick shows that the bears may not give up easily. This suggests that sellers are trying to trap the aggressive bulls by pulling the price back into the wedge. If they do that, the pair could slide to the 20-day EMA.

MATIC/USDT

Polygon (MATIC) climbed above the 20-day EMA ($0.81) on Jan. 8 and followed that up with another up-move on Jan. 9.

The bulls will try to drive the price to the overhead resistance at $0.97. If the price turns down from this level but rebounds off the moving averages, it will suggest that lower levels are attracting buyers. That could increase the likelihood of a rally to $1.05.

Another possibility is that the price turns down sharply from $0.97 and slumps below the moving averages. Such a move will suggest that the MATIC/USDT pair could consolidate between $0.97 and $0.75 for some more time.

LTC/USDT

Litecoin (LTC) rebounded off the moving averages on Jan. 6 and surged above the overhead resistance at $80 on Jan. 9. The emboldened bulls will try to build upon this momentum and thrust the price above $85.

If they manage to do that, the LTC/USDT pair could start a new uptrend. The first target on the upside is $106 and then $115. The upsloping moving averages and the RSI in the overbought territory indicate the path of least resistance is to the upside.

Conversely, if the price turns down from $85, the pair could slip to $75. If the price bounces off this support, the bulls will again try to clear the overhead resistance. The bears will have to drag the price below $72 to gain the upper hand.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Price analysis 1/2: SPX, DXY, BTC, ETH, BNB, XRP, DOGE, ADA, MATIC, LTC

January 2, 2023 Coin Telegraph

Binance Coin

The DXY has turned bearish and that could prove to be a boon for SPX, cryptocurrency and Bitcoin.

The S&P 500 index (SPX) fell 19.4% and the Nasdaq nosedived 33.1% in 2022, recording the worst performance since 2008. The crypto markets also had a horrendous year with Bitcoin (BTC) falling roughly 65% in 2022. In comparison, the United States dollar, which is perceived to be a safe haven, rallied nearly 9%, its best year since 2015.

There are several green shoots visible for the cryptocurrency sector for 2023. The U.S. dollar index (DXY), which usually moves in inverse correlation with Bitcoin may have topped out. This increases the likelihood that select cryptocurrencies may be close to forming a bottom.

Several traders miss buying at lower levels because they attempt to catch the bottom. Instead, long-term investors who believe in the crypto story may consider building a portfolio or adding positions in batches. Thus, they will have some skin in the game and not repent when the next bull move begins.

Could the U.S. dollar index continue its correction and will that benefit risky assets? Let’s study the charts to find out.

SPX

The bears tried to extend the correction last week but the bulls managed to defend the 3,764 level. This indicates that the bulls are trying to form a higher low in the S&P 500 index.

The 20-day exponential moving average (3,880) is sloping down and the relative strength index is near 45, suggesting that bears have a slight edge. If bulls want to gain the upper hand, they will have to push the price above the moving averages.

That could open the doors for a possible recovery to the downtrend line where the bears may again mount a strong defense. Buyers will have to pierce this resistance to signal a potential trend change.

On the contrary, if the price turns down from the 20-day EMA and plummets below 3,764, the selling could intensify and the index may slide to 3,650.

DXY

Buyers tried to propel the U.S. dollar index above the 20-day EMA (104) on Dec. 28 but the bears held their ground. This indicates that the sentiment has turned negative and traders are selling on relief rallies.

The bears yanked the price below the immediate support of 103.44 on Dec. 30, indicating the resumption of the downtrend. The index could next drop to 102 and thereafter plunge to the psychologically important level of 100.

This negative view could invalidate in the near term if the price turns up from the current level and breaks above the 20-day EMA. The index could then rally to the 50-day simple moving average ($106).

BTC/USDT

Bitcoin has been oscillating between $16,256 and $17,061 for the past few days. This tight consolidation indicates indecision among the bulls and the bears.

The 20-day EMA ($16,777) is flattening out and the relative strength index (RSI) is just below the midpoint, suggesting a balance between supply and demand. The next trending move is likely to start after the price escapes the range.

If the price breaks below $16,256, the selling could accelerate and the BTC/USDT pair may retest the crucial support at $15,476.

Alternatively, if the price breaks above $17,061, the pair could pick up pace and climb to the overhead resistance at $18,388. This level may again witness a tough battle between the bulls and the bears.

ETH/USDT

The bulls have failed to drive Ether (ETH) above the moving averages in the past few days but an encouraging sign is that they have not ceded ground to the bears.

This suggests that the bulls will make one more attempt to propel the price above the moving averages. If they succeed, the ETH/USDT pair could rally to the stiff overhead resistance at $1,352. The bears are likely to protect this level with vigor.

If bulls fail to clear the overhead hurdle at the moving averages, the pair could dip to the immediate support at $1,150. This is an important level for the bulls to guard because a break below it will complete a head and shoulders pattern, which has a target objective of $948.

BNB/USDT

BNB (BNB) has been trading near the breakdown level of $250 for the past few days. This shows that the bears are trying to flip the level into resistance while the bulls are attempting to thrust the price back above it.

This tight-range trading is unlikely to continue for long. The longer the price remains inside the tight range, the stronger the eventual breakout.

If buyers kick the price above the $250 to $255 overhead resistance zone, the BNB/USDT pair could advance to the 50-day SMA ($270). This level may act as a minor hurdle but if surpassed, the pair may rise to $300.

The bears are likely to have other plans. They will try to shield the overhead zone and sink the price below $236. If they do that, the pair could slump to $220 and then to $200.

XRP/USDT

XRP (XRP) tumbled below the support line of the symmetrical triangle and fell to the strong support at $0.30. The long tail on the candlestick shows that the bulls aggressively purchased the dip to $0.30.

The XRP/USDT pair has re-entered the triangle and the bulls are trying to build upon the momentum by pushing the price above the 20-day EMA ($0.35). If they do that, the pair could reach the resistance line. If bulls scale this level, the pair could jump to $0.42.

Conversely, if the price fails to sustain above the 20-day EMA, it will suggest that bears continue to sell on every rally. The bears will then again strive to sink the price below the support line of the triangle.

DOGE/USDT

Dogecoin (DOGE) broke and closed below the $0.07 support on Dec. 30 but this proved to be a bear trap. The bulls purchased at lower levels and pushed the price back above $0.07 on Dec. 31.

The buying picked up further on Jan. 2 and the bulls are trying to strengthen their position by catapulting the price above the downtrend line. If they can pull it off, the DOGE/USDT pair could challenge the resistance near $0.08. A break above this level could trigger stop losses of aggressive bears, resulting in a short squeeze. The pair could then climb toward $0.11.

This positive view could be negated if the price turns down from the current level and breaks below the intraday low made on Dec. 30. The pair could then decline to the pivotal support near $0.05.

ADA/USDT

Cardano (ADA) has started a recovery and the price is nearing the 20-day EMA ($0.26). The positive divergence on the RSI suggests that the selling pressure could be reducing.

The 20-day EMA is an important level to keep an eye on. If buyers overcome this obstacle, the ADA/USDT pair could rise to the breakdown level of $0.29. If this level is also scaled, the pair could touch the downtrend line.

Contrarily, if the price once again turns down from the 20-day EMA, it will suggest that bears are active at higher levels. The pair could then drop to the support line where the buyers may step in to stop the decline.

MATIC/USDT

Polygon (MATIC) fell below $0.75 on Dec. 30 but the bears could not capitalize on the advantage and pull the price to the critical support at $0.69.

The bulls are trying to start a relief rally, which could face selling at the moving averages. If the price turns down from this resistance, it will suggest that higher levels are attracting selling by the bears. That could increase the likelihood of a drop to $0.69.

On the other hand, if bulls drive the price above the moving averages, the MATIC/USDT pair could rally to $0.97. This level may again behave as a strong barrier but if bulls surpass it, the next stop will likely be $1.05.

LTC/USDT

Litecoin (LTC) soared above the moving averages and the overhead resistance at $75 on Jan. 3. This indicates that buyers are attempting to take control.

If the price sustains above $75, the LTC/USDT pair could rally to $85. This level may act as a minor obstacle but if crossed, the pair could pick up pace and skyrocket to the psychologically vital level of $100.

If bulls fail to sustain the price above $75, the pair could drop to the moving averages. If the price rebounds off this support, the possibility of a break above the overhead resistance increases. The bears will be at an advantage if the price turns down and falls below the moving averages.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Market data is provided by HitBTC exchange.

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