Bitcoin (BTC) has surpassed the significant milestone of $50,000, driven by the strength of the US stock markets and positive inflows into Bitcoin exchange-traded funds (ETFs). The continuous inflows into Bitcoin ETFs for 11 consecutive days have been highlighted by popular trader Daan Crypto Trades. While some analysts predict the bull run will continue, James Van Straten, research and data analyst at CryptoSlate, warns of a possible correction as Bitcoin’s total supply in profit approaches 95%, a level that typically indicates market tops.
Despite short-term risks, long-term indicators suggest an encouraging outlook. Glassnode, a cryptocurrency analysis platform, suggests in a recent post that certain on-chain indicators indicate Bitcoin may be in the early stages of a bull market.
Can Bitcoin’s upward movement extend to lift select altcoins? Let’s examine the charts to find out.
S&P 500 Index:
Last week, the S&P 500 Index (SPX) rallied above the psychologically significant level of 5,000, indicating strong demand from buyers. If the price remains above 5,000, the index is expected to gain momentum and surge towards the next target at 5,200. However, caution is advised as negative divergence on the relative strength index (RSI) suggests a potential correction.
U.S. Dollar Index:
The U.S. Dollar Index (DXY) is consolidating after breaking out of the inverse head-and-shoulders pattern. With the 20-day exponential moving average (EMA) and the RSI in positive territory, bulls have a slight advantage. Breaking above 104.60 would signal a resumption of the uptrend, with potential targets at 106 and 107. Conversely, a drop below the neckline could indicate a bearish comeback, invalidating the bullish setup.
Bitcoin:
Bitcoin broke above the previous high of $48,970, signaling the start of the next leg of the uptrend. A close above $48,970 would confirm the breakout and pave the way for a potential rally to $52,000. While $50,000 may act as a minor resistance, strong momentum could clear the path for a rise to $60,000. However, a downturn below $48,970 would suggest bearish selling near $50,000, increasing the risk of a fall to $44,700.
Ether:
Ether’s recovery faced resistance near the 61.8% Fibonacci retracement level of $2,507. Nonetheless, the rising 20-day EMA and positive RSI indicate bullish control. If the minor resistance at $2,600 is surpassed, the ETH/USDT pair could reach $2,717. On the downside, the breakout level of $2,400 serves as key support. Breaking below this level could accelerate selling, potentially leading to a drop to the strong support at $2,100.
BNB:
BNB broke above the downtrend line but struggles to reach the overhead resistance at $338. However, solid buying at lower levels is evident. Clearing the minor hurdle at $326 may push the price to the stiff overhead resistance at $338. Conversely, a sharp downturn below the moving average could indicate a bearish comeback, with a potential slump to the strong support at $288.
XRP:
XRP’s recovery attempt faces selling at the 20-day EMA, indicating negative sentiment and selling on rallies. A drop below the strong support at $0.50 could result in a slide to the critical support at $0.46. On the upside, a break and close above the 20-day EMA would indicate strength and could lead to a climb towards the downtrend line, a major hurdle for the bulls, followed by a possible rally to $0.67.
Solana:
Solana broke above the neckline of an inverse head-and-shoulders pattern and is currently defending the level during a pullback. Maintaining the price above $107 could accelerate the SOL/USDT pair towards $117 and $126, with the next target at $135. However, a sharp downturn below the moving averages could suggest a bull trap, leading to a potential fall to $93 and possibly $80.
Cardano:
Cardano is witnessing a battle between bulls and bears near the downtrend line of a descending channel pattern. Although the bulls pushed the price above the channel, the breakout was not sustained. Buyers will try to propel the ADA/USDT pair to $0.62 and subsequently to $0.68. On the other hand, bears may attempt to drag the price back below the moving averages, potentially leading to a fall to the vital support at $0.46.
Avalanche:
Avalanche faces selling near $42, indicating resistance at higher levels. However, bouncing off the 20-day EMA would suggest positive sentiment and view dips as buying opportunities. Breaking above $42 could pave the way for a rise to $50. Alternatively, a drop below the moving averages could indicate a fake breakout, with potential decline to $32.
Dogecoin:
Dogecoin trades within a symmetrical triangle, reflecting indecision between bulls and bears. A break above the triangle would give buyers an advantage and could lead to a rally to the $0.10 to $0.11 resistance zone. Conversely, sinking below the uptrend line would favor bears, potentially resulting in a fall to the strong support at $0.07 and eventually $0.06.
Disclaimer: This article does not provide investment advice or recommendations. Trading involves risk, and readers should conduct their own research before making any decisions.