Price analysis 7/31: SPX, DXY, BTC, ETH, XRP, BNB, ADA, DOGE, SOL, LTC
The S&P 500 Index continued its march toward its all-time high with a 3% gain in July. Signs of receding inflationary pressures and expectations of an end to the Federal Reserve’s tightening cycle are the factors that boosted risk-on sentiment.
However, this bullish mood did not benefit Bitcoin (BTC) as it largely remained range-bound in July and is on track to end the month with a loss of more than 3%. The biggest question troubling traders is when will Bitcoin’s range break and in which direction.
Typically, the longer the time spent inside the range, the greater the force needed for the breakout. Once the price escapes the range, the next trending move is likely to be strong. The only problem is that it is difficult to predict the direction of the breakout with certainty. Hence, it is better to wait for the price to sustain above or below the range before taking large bets.
With Bitcoin trading inside a range, could the action shift to altcoins? Let’s analyze the charts to find out.
The S&P 500 Index (SPX) has been in an uptrend. The bears tried to pull the price back below the breakout level of 4,513 on July 27, but the bulls held their ground. This suggests that buyers are trying to flip the 4,513 level into support.
The upsloping moving averages indicate that bulls are in control, but the negative divergence on the relative strength index (RSI) suggests that the bullish momentum could be slowing down.
The up move is likely to face strong selling at 4,650. If the price turns down from this level but rebounds off the 20-day exponential moving average (EMA) of 4,509, it will suggest that the uptrend remains intact.
The first sign of weakness will be a break and close below the 20-day EMA. That could open the gates for a
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