Comprehensive Analysis: S&P 500, Cryptocurrencies, Bitcoin (BTC), and the Dollar Index (DXY) Review!
Experts are warning of further downside risks in the cryptocurrency markets while the price of Bitcoin continues to remain stable. This week, many data will be released in the macro front, but cryptocurrencies have been unresponsive to this data for a while. So what can we expect when we consider the US stock markets, the DXY, and crypto together?
S&P 500 and DXY Review
The S&P 500 Index (SPX) turned down from moving averages on August 24, but sellers couldn’t do more. Bulls continued their buying pressure after the recovery on August 25 and pushed the index back to the moving averages. If buyers overcome this obstacle, the index could rise to the general resistance zone between 4,607 and 4,650.
This critical zone will witness a serious struggle. Since the correlation in crypto has turned positive, the optimistic scenario can also be favorable for BTC and altcoin investors.
As for the Dollar Index, the downtrend line has been taken back. DXY, indicating the strengthening of the dollar, actually presents a clear picture of macro data, the current outlook, and the possibility of further tightening by the Fed. If DXY is increasing, it means that the decline will continue for crypto.
Bulls will try to pull the index back to the 106 level in their next attempts. The rising 20-day exponential moving average (103) and the relative strength index (RSI) close to the overbought zone indicate an advantage for buyers.
Cryptocurrencies and BTC Review
According to CoinGlass data, Bitcoin lost about 11% in August. Last year, the losses were 13.88% in the same period. The outlook for September does not look very bright either. Historical data suggests that September is prone to significant sell-offs. As we shared with you over the weekend, Bloomberg Intelligence senior macro strategist Mike McGlone warns of further downside. Mike was saying similar things when BTC was above $30,000.
Bitcoin continues to trade in the range of $24,800 to $26,833, so everyone chooses to be cautious. The downward sloping moving averages and the RSI in the oversold zone indicate that bears are in command. However, the strong defense of the $24,800 support by the bulls fuels hope for an upward move.
If the price bounces back from the support, it will indicate that the BTC/USDT pair can continue to consolidate for a while. A convincing breakthrough above $26,833 could trigger demand. In this scenario, the targets are $28,806 and $30,000.
The consensus among experts these days is that if the price closes below $24,500-$24,800, it may collapse to the $23,500 and $22,000 regions. In this case, altcoins could hit new historical lows.