Originally published on: April 22, 2024
Last week, the S&P 500 Index (SPX) took a hit, declining by 3.05% as Federal Reserve interest rate cut hopes dwindled amidst high inflation readings. In contrast, Bitcoin dipped by just 1.1%, indicating relative strength in the market.
According to Charles Edwards, founder of Capriole Investments, Bitcoin’s raw electricity cost per mined block is $77,400. Interestingly, Bitcoin is currently trading below this “electrical cost,” presenting a significant opportunity for investors.
As Bitcoin remains range-bound, the battle between bulls and bears intensifies, leading to increased volatility in the market. This could potentially attract buyers to certain altcoins that are poised for an upward trend.
To better understand the market dynamics, let’s delve into the important resistance and support levels for Bitcoin and other cryptocurrencies in the current scenario.
The S&P 500 Index is currently undergoing a correction phase, with signs indicating bearish dominance in the market. The moving averages have shown a bearish crossover, while the RSI is nearing the oversold zone. A minor support level at 4,920 could trigger a rebound if tested.
On the flip side, the U.S. Dollar Index (DXY) has shown strength, surging above the 105 resistance level. However, a potential rally to 108 could be met with strong resistance from bears, indicating a possible downward move if the price fails to hold.
In the realm of cryptocurrencies, Bitcoin’s battle near the 20-day EMA suggests both bulls and bears are actively vying for control. A break above the 50-day SMA could signal a rally towards $73,777, while a drop below $60,775 might lead to a deeper correction.
Ether (ETH) has shown resilience, with a potential price rise towards the 50-day SMA if the 20-day EMA is breached. On the other hand, BNB, SOL, XRP, TON, DOGE, and ADA are also displaying interesting price action, setting the stage for potential rallies or corrections in the near future.
As market participants navigate through uncertain conditions, it becomes imperative to stay informed and make data-driven decisions. By analyzing charts and monitoring key support and resistance levels, investors can position themselves strategically in the evolving cryptocurrency landscape.
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