Quick Facts
Market Performance Update: A Closer Look at Key Cryptocurrencies and Currencies
The cryptocurrency market has been experiencing a rollercoaster ride over the past few weeks, with prices fluctuating wildly in response to various market forces. In this article, we’ll take a closer look at the top cryptocurrencies, analyzing their recent price action and providing insights into what’s likely to happen next.
S&P 500 Index (SPX)
The S&P 500 Index has been trading in a narrow range over the past few weeks, indicating a period of consolidation. The index has risen to the 20-day exponential moving average (EMA), where the bears are expected to step in. If the price turns down from the 20-day EMA, the bears will attempt to drag the index below the 5,670 level. On the other hand, a close above the 20-day EMA will be the first indication that the correction may be ending. The index may then rise to the 50-day simple moving average (SMA), which is an important level to watch out for.
US Dollar Index (DXY)
The US Dollar Index has rebounded off the 103.37 level, indicating that the bulls are trying to form a floor. The index could reach the 20-day EMA (104.59), which is an important level to watch out for. If the index turns down sharply from the 20-day EMA, the bears will again try to sink the price below 103.37. On the other hand, a break and close above the 20-day EMA suggests the bears are losing their grip. The index could climb to the breakdown level of 105.42, which is likely to act as a formidable barrier.
Bitcoin (BTC)
Bitcoin has broken above the 20-day EMA ($85,572) on March 23, signaling that the start of a strong recovery. The 20-day EMA is flattening out, and the Relative Strength Index (RSI) has risen into positive territory, signaling a minor advantage to the bulls. If the price turns down from the 50-day SMA ($90,290) but finds support at the 20-day EMA, it will indicate a positive sentiment. That increases the possibility of a rally to $95,000 and then to $100,000.
However, if the price turns down from the 50-day SMA and breaks below the 20-day EMA, it will suggest that the bears remain active at higher levels. A drop below $83,000 could sink the BTC/USDT pair to $80,000.
Ethereum (ETH)
Ethereum has bounced off the moving averages, indicating a change in sentiment from selling on rallies to buying on dips. If the price rises and breaks above $2,111, it will signal that the bulls have regained control. The ETH/USDT pair could rally to the 50-day SMA ($2,356) and subsequently to $2,550.
On the other hand, if the price turns down from the current level or the 50-day SMA, it will suggest that the bears remain sellers on rallies. The bears will have to yank the price below $1,750 to start the next leg of the downtrend.
XRP, BNB, SOL, DOGE, ADA, and LINK
The rest of the top cryptocurrencies have also been experiencing price movements. XRP has risen above the 20-day EMA ($2.38), indicating that the bulls are attempting a comeback. BNB has broken out of the 20-day EMA ($0.18) on March 24, indicating that the downtrend could be ending. SOL has bounced off the moving averages, while DOGE has broken out of the 20-day EMA ($0.18). ADA has been trading between the moving averages and the uptrend line, while LINK has broken out of the 20-day EMA ($14.60).
What to Expect Next
In the near term, the cryptocurrency market looks set for a continuation of the recent price movements. The bulls appear to be in control of the market, but the bears may try to stage a comeback if the prices rise too quickly. Traders should watch out for the critical levels of resistance and support, as the market approaches these levels.
The S&P 500 Index is set to continue its consolidation phase, while the US Dollar Index may try to test the 105.42 level. Bitcoin is likely to face resistance at the 50-day SMA, while Ethereum may rally to $2,550.
Disclaimer
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.
