Latest Market Overview 29th July: SPX, DXY, BTC, ETH, SOL, BNB, XRP, DOGE, TON, ADA
The Bitcoin market faced resistance at $70,000 on July 29, suggesting that sellers vigorously defend the area between $70,000 and $73,777. Despite this, the volatility in Bitcoin’s price has had a minimal effect on altcoins.
A survey by Santiment on X indicates that many traders are optimistic about Bitcoin reaching a new all-time high by October, despite recent price corrections.
Investors have been purchasing Bitcoin, anticipating a potential breakout from its current consolidation phase. The latest CoinShares report highlights that Bitcoin saw significant inflows of $519 million last week, bringing July’s total to $3.6 billion and the year-to-date total to $19 billion. This influx of capital is believed to be driven by growing speculation about Bitcoin’s potential role as a strategic reserve asset in the US and expectations of a possible Federal Reserve rate cut in September.
Another bullish voice was that of Global Macro Investor founder and CEO Raoul Pal, who said in an X post that macro conditions are improving and that a rally should start in Bitcoin. He expects the rally to “ last for the rest of 2024 and into 2025.”
Could Bitcoin rise from its current level and break above $70,000? Let’s analyze the charts to find out.
S&P 500 Index (SPX) Market Analysis
The S&P 500 Index fell below the 50-day simple moving average (5,439) on July 25, but the bears could not sustain the lower levels.
The bulls pushed the price back above the 50-day SMA on July 26. Buyers will strengthen their position further by increasing the index above the 20-day exponential moving average (5,508). If they do that, the index could rise to 5,585 and retest the all-time high at 5,670.
Conversely, if the index turns down from the overhead resistance and breaks below 5,390, it will suggest the start of a deeper correction. The index may drop to 5,265 and after that to 5,192. A sharp fall could delay the beginning of the next leg of the uptrend.
US Dollar Index (DXY) Market Analysis
The US Dollar Index has been trading inside the descending channel pattern for the past few days.
The relief rally from the support line has reached the moving averages, likely to act as a strong barrier. If the price turns down sharply from the moving averages, the bears will make another attempt to sink the index below the channel. If they can pull it off, the index could tumble to 102.50.
This negative view will be invalidated if the price breaks above the moving averages. The index could then rally to the channel’s resistance line.
Bitcoin (BTC) Market Analysis
The Bitcoin market reached $70,000 on July 29, but the bulls failed to sustain the higher levels. The long wick on the candlestick shows that bears are fiercely defending the $70,000 level.
The bears will try to pull the price to the 20-day EMA ($65,304). If the price turns up from the current level or the 20-day EMA, it will suggest that the dips are being bought. The bulls will then make another attempt to kick the BTC/USDT pair to $72,000 and eventually to $73,777.
Bears must swiftly drag the price back below the moving averages if they want to prevent the upside. If they do that, it will suggest that the range-bound action may continue for a few more days.
Ether (ETH) Price Analysis
Ether broke below the moving averages on July 24, but the bears could not sink the price to the psychological support at $3,000.
That shows the bulls are buying at lower levels. The buyers are attempting to maintain the price above the moving averages. The ETH/USDT pair could rally to the downtrend line if they succeed. This level is likely to act as a formidable hurdle. If the price turns down from the downtrend line, it will signal that the pair may remain inside the triangle for a while longer.
On the other hand, a break and close above the downtrend line will invalidate the negative setup. That may catapult the price to $4,094.
Solana (SOL) Price Analysis
The bulls pushed the price above the $185 to $189 resistance zone on July 29, but the long wick on the candlestick shows the bears are selling at higher levels. The bears will try to pull the price to the 20-day EMA ($169), which will likely act as solid support.
If the price turns up from the current level or rebounds off the 20-day EMA, it will increase the possibility of a close above $189. The SOL/USDT pair could then travel to $210, where the bulls are expected to face solid selling from the bears.
BNB Price Analysis
BNB has been trading above the 20-day EMA ($574) for the past few days, but the bulls are struggling to push the price above $605.
If the price turns down and breaks below the 20-day EMA, it will suggest that the bulls have given up. That will likely keep the price range-bound between $495 and $635 for some more time.
Alternatively, if buyers clear the obstacle at $605, the BNB/USDT pair may climb to $635. The bears must defend this level because a break above it could clear the path for a rally to $722.
XRP Price Analysis
XRP has been stuck between $0.57 and $0.64 for the past few days, indicating a balance between supply and demand.
The upsloping 20-day EMA ($0.57) and the RSI near 63 suggest that the bulls have the edge. The XRP/USDT pair could rise to $0.64, an important level to watch out for. If buyers clear this hurdle, the pair may increase momentum and surge to $0.74.
Contrary to this assumption, if the price turns down and breaks below the 20-day EMA, it will signal that the bears have seized control. That may start a slide to the 50-day SMA ($0.51).
Dogecoin (DOGE) Price Analysis
Dogecoin bounced off the 20-day EMA ($0.13) on July 28, suggesting that the bulls try to flip the level into support.
The rising 20-day EMA and the RSI in the positive zone suggest that the path of least resistance is to the upside. Buyers will try to drive the price above $0.14 and start the journey to $0.18.
The bears are likely to have other plans. They will try to pull the price below the solid support at $0.12. If they manage to do that, the selling could pick up, and the DOGE/USDT pair may plunge to $0.10.
Toncoin (TON) Price Analysis
Toncoin fell below $6.77 on July 25, but the bears could not extend the decline. This suggests demand at lower levels.
The bulls are trying to push the price back above $6.77. If they do that, the TON/USDT pair could reach the 20-day EMA ($6.99), where the bears will likely sell aggressively. If the price turns down from the 20-day EMA, the bears will strive to move downward to $6.
Contrarily, if buyers kick the price above the 20-day EMA, it will signal that the markets have rejected the lower levels. The pair could climb to the 50-day SMA ($7.32) and subsequently to $7.72.
Cardano (ADA) Price Analysis
Cardano slipped below the 50-day SMA ($0.40) on July 25, but the bears could not sustain the lower levels.
The bulls purchased the dip and pushed the price above the moving averages. Both moving averages flatten out, and the RSI is near the midpoint, suggesting that the bears are losing their grip.
The ADA/USDT pair may reach $0.46, at which point the bears will again try to stall the up move. However, if the bulls prevail, the next stop could be $0.52. If bears want to prevent the upmove, they must tug the price below $0.38.
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