Bitcoin (BTC) has had a positive start to the week, aiming to stay above the $70,000 level. Analysts are optimistic about a potential reversal this week after five consecutive days of negative inflows into spot Bitcoin exchange-traded funds (ETFs) last week.
Goldman Sachs has reported strong demand from its clients for the firm’s future and options offerings. Max Minton, head of digital assets for Goldman Asia Pacific, mentioned that larger clients have shown increased interest in the crypto sector since the launch of spot Bitcoin ETFs.
The demand for spot Bitcoin ETFs is expected to remain strong unless there is a significant drop in the price of Bitcoin. This could result in shallow retracements as market participants will be quick to buy the dips.
Now, let’s take a look at the key resistance levels to watch for in Bitcoin and altcoins by analyzing the charts.
S&P 500 Index:
The S&P 500 Index continues to rise within an ascending channel pattern, indicating that buyers are in control. The price may face selling at the channel’s resistance line, potentially extending its stay within the channel. A break above the channel could lead to a surge to 5,450.
U.S. Dollar Index:
The U.S. Dollar Index fell below the 20-day EMA but quickly bounced back, suggesting aggressive buying at lower levels. If the price turns down from the solid overhead resistance at 105, the index may remain range-bound between 102.50 and 105. A move above 105 could trigger a trending move towards 107.
Bitcoin:
Bitcoin broke out of a pennant formation, indicating that the bulls have taken control. If the price stays above $69,000, the BTC/USDT pair may surge to the overhead resistance at $73,777. A breakout above this level could lead to a rally towards $80,000.
Ether:
Ether has broken out of the 20-day EMA, suggesting that the bulls have established dominance. If the price remains above the 20-day EMA, the ETH/USDT pair could rise to $3,679 and eventually to the overhead resistance at $4,094. However, a drop below the 50-day SMA could indicate a deeper correction.
BNB:
BNB’s relief rally has surpassed the overhead resistance at $590, indicating a potential upward momentum. If the price stays above $590, the BNB/USDT pair could aim for $645 and $692. On the downside, a drop below the 20-day EMA may lead to a decline towards the 50% Fibonacci retracement level at $500.
Solana:
Solana rebounded off the 20-day EMA, suggesting positive sentiment and buying on dips. The SOL/USDT pair may attempt to break the formidable resistance at $205, with a potential rise to $243 and $260. On the downside, the 20-day EMA provides strong support, followed by the 50-day SMA.
XRP:
XRP has been hovering around the 20-day EMA, indicating a struggle between buyers and sellers. The XRP/USDT pair could swing between the uptrend line and $0.67. A move above $0.67 may lead to a rally towards the overhead obstacle at $0.74, while a drop below the uptrend line could result in a decline to $0.52.
Dogecoin:
Dogecoin’s relief rally has reached strong resistance at $0.19. If buyers can hold the current level, the likelihood of a rally above $0.19 increases, potentially pushing the DOGE/USDT pair to $0.23 and $0.30. However, a sharp downturn could indicate continued range-bound action between $0.12 and $0.19.
Cardano:
Cardano’s recovery has reached the crucial resistance at the 20-day EMA. A rejection at this level could lead to a drop towards $0.57, potentially completing a bearish head-and-shoulders pattern. On the other hand, a rise above $0.70 may indicate a bullish comeback, with the pair aiming for $0.81 and $0.92.
Avalanche:
Avalanche has remained above the breakout level of $50, signaling strong demand from bulls. The AVAX/USDT pair may face resistance at $58 but could retest the critical resistance at $65 if surpassed. A breakthrough at $65 could initiate the next leg of the uptrend towards $87. However, a drop below $50 could lead to selling pressure and a decline towards the 50-day SMA.
Please note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment decisions.