The S&P 500 Index (SPX) plunged about 2% last week, but the weakness in the equity markets could not dampen the enthusiasm of the cryptocurrency traders. Bitcoin (BTC) made a strong comeback, rising roughly 12% for the week.
According to CoinShares da, digital asset investment products witnessed strong inflows of $1.35 billion last week, taking the total inflows in the past three weeks to $3.2 billion. Bitcoin’s strength also resulted in outflows of $1.9 million from short-Bitcoin exchange-traded products.
Even after the recent rally, Bitcoin remains stuck inside a sideways price action. As the price nears the resistance, the bears are likely to pose a strong challenge. However, analysts are optimistic about Bitcoin hitting a new all-time high.
Could Bitcoin rise to $70,000, or will traders pull the price back below $65,000? Let’s analyze the charts to find out.
S&P 500 Index price analysis
The S&P 500 Index is correcting in an uptrend, suggesting that the short-term traders are booking profits after a strong rally.
The index plunged below the 20-day simple moving average (5,504) on July 19, but the bears could not continue the downward move. Buyers are trying to push the price back above the 20-day SMA on July 22 but may find it difficult to do so.
If the index closes below the 20-day SMA, the next stop is likely to be the 50-day SMA (5,416). Contrarily, a rise back above the 20-day SMA will signal that the recent breakdown may have been a bull trap. The index may then again climb toward 5,670.
US dollar Index price analysis
The US dollar index (DXY) has been falling inside a descending channel pattern for several days, indicating a negative sentiment.
The price bounced off the channel’s support line on July 18, signaling that the bulls are aggressively defending the level. If the price rises above 104.50, the index could reach the 20-day SMA (104.95), which is likely to act as a solid resistance. If the price turns down from the 20-day SMA, it will increase the possibility of a break below the channel. If that happens, the index could decline to 102.50.
Instead, if buyers propel the price above the moving averages, it will suggest that the index may continue to oscillate inside the channel for a while. A break and close above the channel could start a rally to 108.
Bitcoin price analysis
Bitcoin bounced off the $66,000 level on July 21, but the recovery faltered near $68,500 on July 22, indicating that bears are selling on rallies.
If the $66,000 level breaks down, the BTC/USDT pair could drop to the 50-day SMA ($63,799) support. A solid bounce off the 50-day SMA will indicate that the sentiment has turned positive and traders are buying on dips. The bulls will then make one more attempt to kick the price to the stiff overhead resistance zone between $72,000 and $73,777.
Contrary to this assumption, if the price dives below the 50-day SMA, it will signal that the bears are in the driver’s seat. The pair could then drop to the 20-day SMA ($61,126).
Ether price analysis
Ether (ETH) rose above the 50-day SMA ($3,425) on July 19, but the momentum did not pick up. This suggests a lack of demand at higher levels.
The bears are trying to pull the price back below the 50-day SMA. If they do that, the possibility of a drop to the 20-day SMA ($3,246) increases. This is an important level for the bulls to defend because if it breaks, the ETH/USDT pair may slide to $3,000.
If bulls want to prevent the fall, they will have to defend the moving averages and drive the price above $3,600. The pair could then attempt a rally to the $4,000 to $4,094 resistance zone.
BNB price analysis
BNB (BNB) has been trading inside the large range between $495 and $635 for several days, indicating buying on dips and selling on rallies.
The bulls pushed the price above the 50-day SMA ($586) on July 19 but are finding it difficult to extend the rally to $635. Sellers will again try to pull the price below the 50-day SMA. If they do that, the BNB/USDT pair may tumble to the 20-day SMA.
The critical resistance to watch out for in the near term is $635. If bulls overcome this barrier, it will signal that the uptrend is resuming. The pair may then attempt a rally to $722, where the bears may mount a strong defense.
Solana price analysis
Solana (SOL) broke above the downtrend line on July 20, opening the doors for a possible rally to $210.
However, the bears are unlikely to give up easily. They will try to stall the rally near $189 and pull the price toward the downtrend line. If the price rebounds off the downtrend line, it will signal that the bulls have flipped the line into support. That will increase the likelihood of a rally to $210.
Contrarily, if the price turns down and breaks below the downtrend line, it will suggest that the bears are making a comeback. The SOL/USDT pair could then plummet to the moving averages.
XRP price analysis
The bears pulled XRP (XRP) below the breakout level of $0.57, but they could not sustain the lower levels. This suggests aggressive buying on dips.
The bulls will try to push the price above $0.64, setting the stage for a move to $0.67 and later $0.74. Sellers are expected to defend the $0.74 level with all their might. If the XRP/USDT pair turns down from $0.74, it will signal that the range-bound action may continue for a few more days.
The $0.57 to $0.54 zone is expected to act as a strong support on declines. A break below the zone will tilt the advantage in favor of the bears.
Related: Why is Solana (SOL) price up today?
Toncoin price analysis
Toncoin (TON) has turned down from the moving averages, indicating that the bears are defending the level.
The 20-day SMA ($7.29) has started to turn down, and the RSI is just below the midpoint, indicating a slight advantage to the bears. The TON/USDT pair could slide to the solid support at $6.77. This level is expected to attract strong buying by the bulls, which could keep the pair inside the $6.77 to $7.72 range for a while.
A break and close below $6.77 will complete a double-top pattern, starting a downtrend. On the other hand, a rise above $7.72 could challenge the stiff overhead resistance of $8.29.
Dogecoin price analysis
Dogecoin (DOGE) turned up from the 20-day SMA ($0.12) on July 19 and broke above the 50-day SMA ($0.13) on July 20.
The 20-day SMA has started to turn up, and the RSI is near the overbought zone, indicating that bulls have the edge. The DOGE/USDT pair could attempt a rally to the overhead resistance at $0.18.
On the downside, the 50-day SMA and then the 20-day SMA are likely to act as strong support. If the price rebounds off the moving averages, it will improve the prospects of the resumption of the relief rally.
Cardano price analysis
Cardano (ADA) has been trading above the moving averages, but the bulls are struggling to push the price above $0.46. This suggests a lack of demand at higher levels.
The ADA/USDT pair could remain stuck between the moving averages and $0.46 for some time. If the range resolves to the upside, it will signal the start of an up move toward $0.52, where the bears may mount a strong defense.
Alternatively, if the price continues lower and plummets below the moving averages, it will signal that the bears remain active at higher levels. The pair may then slump to the strong support at $0.35.
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.