The US equity markets have demonstrated a strong performance in the first half of the year, with the Nasdaq Composite and the S&P 500 Index achieving notable gains. This suggests that there is continued demand for risky assets in the market. At the same time, Bitcoin (BTC) has led the recovery in the cryptocurrency market, experiencing a 20% increase in Q2 2023. An encouraging sign is that long-term Bitcoin holders (hodlers) have not been quick to sell their holdings, as evidenced by Glassnode’s Illiquid Supply Change metric nearing cycle highs.
Typically, when the leader of a market, such as Bitcoin, starts to rally and sustain its gains, it can improve sentiment among traders who then begin to explore other buying opportunities, including altcoins. As a result, several altcoins are showing signs of life, indicating the possibility of a broader crypto rally in the coming weeks.
In terms of the US equities markets, the S&P 500 Index has shown resilience as the bulls successfully flipped the breakout level into support at 4,325. The index has surpassed immediate resistance at 4,448, suggesting a resumption of the uptrend. While the bears may present a challenge at 4,500, it is unlikely to hold as a strong resistance. If the index surpasses this level, it could potentially reach 4,650.
The US dollar index (DXY) has also displayed strength as the bulls pushed it above the 20-day exponential moving average (EMA) at 103. Lower levels have attracted buyers, indicating a positive outlook. However, if the price turns down and breaks below the moving averages, it would suggest selling pressure from bears on minor rallies, potentially leading to a decline towards immediate support at 102.
As for Bitcoin, the bulls are attempting to push the price above the critical resistance level of $31,000. The presence of a long tail on the candlestick indicates that buyers are actively purchasing intraday dips. If the price sustains above $31,000, it could gain momentum and target the $40,000 level. The rising 20-day EMA and the relative strength index (RSI) near the overbought zone favor the buyers. However, sellers would need to bring the price below the 20-day EMA to regain control in the short term, potentially leading to a drop towards the 50-day simple moving average.
In the altcoin market, Ether (ETH) has seen buyers stepping in on minor dips as indicated by the long tail on the candlestick. The 20-day EMA has turned up, and the RSI above 62 suggests bullish momentum. While there is a minor resistance at $2,000, it is expected to be surpassed, potentially leading to a rally towards the overhead resistance zone between $2,142 and $2,200. Conversely, if the price turns down sharply and falls below the moving averages, the pair may continue its range-bound action between $1,626 and $2,000.
Other altcoins, such as Binance Coin (BNB), XRP, Cardano (ADA), Dogecoin (DOGE), Solana (SOL), and Litecoin (LTC) have also experienced notable movements. These altcoins have shown signs of reduced selling pressure or buying support at key levels, indicating the potential for further upward moves in their respective price charts.
It’s important to note that this article is for informational purposes only and does not serve as investment advice. Readers should conduct their own research and analysis before making any investment decisions.