Price analysis 1/23: SPX, DXY, BTC, ETH, BNB, XRP, DOGE, ADA, MATIC, DOT
Bitcoin’s (BTC) price has risen about 37% year-to-date and is not showing any signs of slowing down. The S&P 500 index (SPX) has also made a winning start to the year but has seen a relatively muted rally of roughly 4%.
While the price of risky assets are rising, the United States dollar index (DXY), perceived as a safe haven, extended its downtrend and declined more than 1% in January.
The change in sentiment toward risky assets may have been triggered by expectations that the U.S. Federal Reserve could slow down its rate hikes as inflation cools off. Some analysts even expect the Fed to pivot and start cutting rates before the end of the year.
Several analysts remain skeptical about Bitcoin’s rally but the longer the price sustains above $20,000, the greater the possibility that the macro low may have been made in November. If the next decline forms a higher low, it could further confirm that the worst may be behind us.
Could the rally in Bitcoin and altcoins witness profit booking in the next few days? Let’s study the charts to find out.
The S&P 500 reversed direction from the downtrend line on Jan. 18 and plunged below the moving averages on Jan. 19 but the bears could not sustain the lower levels.
The bulls purchased the dip on Jan. 20 and pushed the price back above the moving averages. Buyers built upon this strength and are trying to clear the overhead obstacle at the downtrend line on Jan. 23. If they manage to do that, it will suggest a potential trend change. The index may soar to 4,325 with a minor pit stop at 4,100.
Contrary to this assumption, if the index fails to sustain above the downtrend line, it will suggest that bears are active at higher levels.
A break below 3,885 could tilt the short-term advantage in
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