Price analysis 12/5: SPX, DXY, BTC, ETH, BNB, XRP, ADA, DOGE, MATIC, DOT
It’s the final month of the year and analysts are out with their projections for the next year. In a note to investors, Standard Chartered suggested that “The financial-market surprises of 2023” will include Bitcoin (BTC) price diving to $5,000 at some point in the year. The fall will be triggered by a liquidity crunch, which could result in more bankruptcies and a fall in investor confidence in the crypto sector.
If this feels like an extreme, venture capitalist Tim Draper went in the opposite direction and predicted that Bitcoin could skyrocket to $250,000 by the middle of 2023. While speaking with CNBC, Draper said that Bitcoin’s massive rally is likely to be fuelled by increased participation from women who control a large part of retail spending.
In the short term, analysts remain divided on the prospects of a Bitcoin rally. While some analysts expect a Christmas rally to push Bitcoin toward $19,000, others are not so optimistic.
Could the S&P 500 index (SPX) witness profit booking in the near term? Is the U.S. dollar index (DXY) ripe for a recovery? What is the effect of these two asset classes on cryptocurrencies? Let’s study the charts to find out.
The S&P 500 index rebounded off the 20-day exponential moving average (3,967) on Nov. 30, indicating that bulls continue to view the dips as a buying opportunity.
The price reached the downtrend line on Dec. 1 but the bulls failed to pierce this resistance. This indicates that the downtrend line is likely to act as a formidable resistance. The price could oscillate between the downtrend line and the 20-day EMA for a few days.
The upsloping 20-day EMA and the relative strength index (RSI) in the positive territory indicate that the path of least resistance is to the upside.
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