Price analysis 2/6: SPX, DXY, BTC, ETH, BNB, XRP, DOGE, ADA, MATIC, DOT
The United States dollar index (DXY) has started a strong recovery and its rise is putting pressure on Bitcoin (BTC) and the S&P 500 (SPX) index. The market participants will be keenly watching for any insights on future rate hikes when the Federal Reserve Chairman Jerome Powell speaks before the Economic Club of Washington on Feb. 7.
Meanwhile, Bitcoin’s 43% rebound in January has improved sentiment among small investors. Crypto analytics firm Santiment said that the number of Bitcoin addresses holding 0.1 Bitcoin or less soared by 620,000 to hit 39.8 million, the highest level since Nov. 19.
With the sentiment turning positive, traders usually buy the dips as they anticipate the uptrend to continue. However, some analysts believe that the dip buyers will get trapped and Bitcoin may fall to the $19,000 to $21,000 support zone or worse, witness a capitulation in the next few weeks.
Could the S&P 500 and the cryptocurrency markets witness profit booking in the short term? What are the critical support levels to watch out for? Let’s study the charts to find out.
The S&P 500 index soared above the 4,101 resistance on Feb. 1 but the bears are unlikely to give up without a fight. They will try to pull the price back above 4,101 and trap the aggressive bulls.
The onus is upon the bulls to try and protect the zone between 4,101 and the 20-day exponential moving average (4,033). If the price rebounds off this zone, the likelihood of a break above 4,200 increases. That could clear the path for a possible rally to 4,300 where the bears may again erect a strong barrier.
On the downside, the 20-day EMA is the crucial support to keep an eye on. A break and close below it will suggest that the bulls may be losing their grip, putting the
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