Price analysis 1/17: SPX, DXY, BTC, ETH, BNB, XRP, DOGE, ADA, MATIC, DOT

cointelegraph.com:

Risk assets have started the new year on a strong note. The S&P 500 (SPX) and the Nasdaq closed in the positive for the second successive week and also notched their best weekly performance since November. 

Bitcoin (BTC) led the recovery in the crypto markets with a sharp 21% rally last week. That sent the Bitcoin Fear and Greed Index into the neutral territory of 52 on Jan. 15, its highest since April 5, 2022. However, the index has given back its gains and is again back into the Fear zone on Jan. 17.

The strong rally in Bitcoin has divided analysts' opinions. While some expect the rally to be a bull trap, others believe that the up-move could be the start of a new bull market. The confirmation of the same will happen during the next dip. If the cryptocurrencies form a higher low followed by a higher high, it will suggest that the downtrend could be over.

Could the S&P 500 extend its rally? What are the critical levels on BTC and the cryptocurrencies to watch out for? Let’s study the charts to find out.

The S&P 500 continued its recovery last week and has reached the downtrend line. The 20-day exponential moving average (3,904) has started to turn up and the relative strength index (RSI) is in the positive territory, indicating advantage to the buyers.

The bulls will have to thrust and sustain the price above the downtrend line to signal a potential trend change. The bears may try to stall the up-move in the 4,100 to 4,120 zone but if bulls overcome this resistance, the index could rally to 4,200 and then 4,325.

If bears want to prevent this change in trend, they will have to quickly pull the price below the moving averages. If they do that, it will suggest that higher levels are attracting sellers. The index could then slide