Bitcoin (BTC) has had a positive start to the week as it aims to stay above the $70,000 mark. Analysts are optimistic about a potential reversal this week after five consecutive days of negative inflows into spot Bitcoin exchange-traded funds (ETFs) last week.
Goldman Sachs has reported that its clients are showing a strong interest in the firm’s future and options offerings. Max Minton, head of digital assets for Goldman Asia Pacific, stated that larger clients have shown increased interest in the crypto sector following the launch of spot Bitcoin ETFs.
The demand for spot Bitcoin ETFs is expected to remain strong unless there is a significant drop in Bitcoin prices. This could result in shallow retracements as market participants will likely take advantage of buying opportunities.
Let’s take a look at the key resistance levels to watch out for in Bitcoin and altcoins by analyzing the charts.
S&P 500 Index:
The S&P 500 Index continues to rise within an ascending channel pattern, indicating that buyers are in control. If the price turns down from the resistance line of the channel, the index may remain within the channel. However, a break above the channel could lead to a surge to 5,450. On the other hand, if the price falls below the 20-day exponential moving average, it may indicate a possible correction in the near term.
U.S. Dollar Index:
The U.S. Dollar Index fell below the 20-day exponential moving average but quickly rebounded, suggesting aggressive buying at lower levels. If the price turns down from the solid overhead resistance at 105, the index may trade between 102.50 and 105 for some time. However, a break above 105 could initiate a trending move toward 107.
Bitcoin:
Bitcoin has broken out of a pennant formation, signaling that bulls have taken control. If the price remains above $69,000, the BTC/USDT pair could surge to the overhead resistance at $73,777. However, a price reversal from the current level may suggest a bear trap, with the possibility of the pair tumbling to the 50-day simple moving average at $59,018.
Ether:
Ether has broken out of the 20-day exponential moving average, indicating the dominance of bulls. If the price remains above the 20-day EMA, the ETH/USDT pair could rise to $3,679 and potentially rally to the overhead resistance at $4,094. However, a drop below the 50-day SMA may lead to a deeper correction.
BNB:
BNB’s relief rally has surpassed the resistance at $590, indicating a potential upward momentum. If the price remains above $590, the BNB/USDT pair could rally to $645 and potentially reach $692. However, a drop below the 20-day EMA may lead to a decline to the 50% Fibonacci retracement level at $500.
Solana:
Solana has rebounded from the 20-day EMA, suggesting positive sentiment and buying on dips. If the price turns down from the resistance at $205, the SOL/USDT pair may trade between $168 and $205 for some time. However, a break above $205 could indicate the start of the next uptrend leg, with a potential rise to $243 and $260.
XRP:
XRP has been trading around the 20-day EMA, indicating a battle between buyers and sellers. If the price breaks above $0.67, the XRP/USDT pair may rally to the resistance at $0.74. On the downside, a drop below the uptrend line may lead to a decline to $0.52.
Dogecoin:
Dogecoin’s relief rally has reached the resistance at $0.19, where bears are expected to defend. If buyers maintain the current level, the DOGE/USDT pair may rally to $0.23 and potentially reach $0.30. However, a sharp price reversal may result in a range-bound action between $0.12 and $0.19.
Cardano:
Cardano’s recovery has reached the 20-day EMA, a crucial resistance level. If the price turns down from this level, the ADA/USDT pair may drop to $0.57 and potentially complete a bearish head-and-shoulders pattern. Conversely, a rise above $0.70 could indicate a bullish comeback, with a potential climb to $0.81 and $0.92.
Avalanche:
Avalanche has remained above the breakout level of $50, indicating strong demand from bulls. If the price crosses the minor hurdle at $58, the AVAX/USDT pair may retest the critical resistance at $65. A breakthrough at this level could initiate the next uptrend leg to $87. On the downside, a drop below $50 may lead to a decline to the 50-day SMA at $44.
Please note that this article does not provide investment advice or recommendations. It is important to conduct your own research before making any investment decisions.