The S&P 500 index has been on an upward trend for five consecutive weeks, while Bitcoin remains well below its local high of $31,000 made on April 14. However, the weakness in the US dollar index and the strength in the S&P 500 could limit the short-term downside in Bitcoin and other altcoins. The US dollar index and Bitcoin have an inverse correlation, and historically, a drop in the former may launch a relief rally for the latter.
There are positive rumors floating in the market, such as after BlackRock filed for a Bitcoin spot exchange-traded fund, Fidelity Investments may follow suit. This could be a significant positive trigger for the cryptocurrency market.
Bitcoin has been trading inside a descending channel pattern for several weeks, trying to recover from recent losses. If it manages to break the resistance line of the channel, it could start a new up-move. Ether is also attempting to recover, but facing selling at the 20-day exponential moving average, and Cardano is struggling to initiate a relief rally despite deeply oversold levels.
Dogecoin has been trading within a tight range, while Solana is witnessing a tough battle near the $15.28 level. The bulls are trying to maintain Litecoin above the immediate support level at $75, which suggests that lower levels are being bought.
This article does not provide investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their research before making any decisions.