Latest Market Overview 6th May: SPX, DXY, BTC, ETH, BNB, SOL, XRP, TON, DOGE, ADA
The Bitcoin market is encountering resistance around the 50-day SMA, indicating that the period of range-bound activity may persist for a few days.
Bitcoin experienced heightened volatility in the past week. It bounced back from an intra-week low of approximately $56,500 to close above $64,000, marking a slight increase of around 1.5% compared to the previous week. This demonstrates ongoing positive sentiment, with bullish investors seizing opportunities at lower price levels.
As per data from Farside Investors, spot Bitcoin exchange-traded funds saw net inflows of $378 million on May 3. Particularly noteworthy was the influx of $63 million into the Grayscale Bitcoin Trust ETF, its first since transitioning into a spot Bitcoin ETF in January. While it’s premature to conclude, early indicators suggest that the continuous selling pressure on GBTC may be subsiding.
Bitcoin’s recovery in 2024 has helped the sector attract venture capital funding of over $1 billion for two consecutive months in March and April, according to RootData. This was the first such occasion since October through November 2022.
What are the critical resistance levels to watch out for in Bitcoin and altcoins? Let’s analyze the charts to find out.
S&P 500 Index (SPX) Market Analysis
The bears struggle to sustain the S&P 500 Index market below the moving averages, indicating solid buying at lower levels.
If buyers sustain the price above the 50-day simple moving average (5,131), it will signal that the corrective phase may be over. The index may attempt a rally to the all-time high at 5,265, where the bulls are likely to encounter strong selling by the bears.
If the price drops sharply from 5,265, the index may enter a range for a few days. On the other hand, a break above 5,265 will indicate the resumption of the uptrend. The index may attempt a rally to 5,500. The critical support on the downside is 5,000 and then 4,950.
U.S. Dollar Index (DXY) Market Analysis
The U.S. Dollar Index market turned down from the 106.50 overhead resistance on May 1, indicating that the bears are fiercely defending the level.
The bears pulled the price below the 20-day EMA (105.43) on May 2 and extended the fall to the 50-day SMA (104.56) on May 3. Lower levels attracted solid buying by the bulls, as seen from the long tail on the May 3 candlestick.
If the price turns down from the 20-day EMA, it will increase the likelihood of a drop to the support line of the ascending channel. On the other hand, a break above the 20-day EMA could propel the price toward 106.50.
Bitcoin (BTC) Market Analysis
After a minor hesitation, the Bitcoin market surged above the 20-day EMA ($63,556), but the bulls could not pierce the 50-day SMA ($65,937).
Both moving averages have flattened out, and the RSI is near the midpoint, indicating a range-bound action in the near term. The BTC/USDT pair will likely remain between $56,500 and $73,777 for some more time.
A break and close above the 50-day SMA could attract further buying, pushing the pair to $73,777. The bulls are expected to face formidable resistance at this level because if it breaks down, the pair may start the next leg of the uptrend to $80,000.
Ether (ETH) Price Analysis
Ether broke out of the 20-day EMA ($3,143) on May 6, but the long wick on the candlestick shows strong selling by the bears.
The sellers will try to build upon their strength and pull the price down to the vital support at $2,850. This is a significant level to keep an eye on because a drop below it could result in a decline to the support line of the descending channel.
This negative view will be invalidated in the near term if the price rises from the current level and soars above the resistance line. Such a move would suggest a potential trend change, and the ETH/USDT pair may then rise to $3,730.
BNB Price Analysis
BNB rose above the moving averages on May 3, signalling that the bulls are trying to push the price to the overhead resistance of $635.
The bears have successfully protected the $635 level on four previous occasions; hence, they will try to do the same again. If the price turns sharply from the overhead resistance, it will suggest that the BNB/USDT pair may oscillate between $495 and $635 for a while longer.
A break and close above $635 will indicate the resumption of the uptrend. The pair may climb to $692, where the buyers may face stiff resistance. On the way down, the bears must sink and maintain the price below $495 to seize control.
Solana (SOL) Price Analysis
Solana has been trading between $126 and $162 for several days, indicating indecision about the next directional move.
The flattish 20-day EMA ($146) and the RSI just above the midpoint suggest that the range-bound action may continue for some more time. If the price maintains above the 20-day EMA, the SOL/USDT pair could rally to the overhead resistance at $162. Buyers may find it challenging to overcome this obstacle.
However, if the bulls bulldoze above $162, the pair may accelerate toward $205. This level is likely to act as a formidable resistance. On the downside, a break below the 20-day EMA could sink the pair to $126.
XRP Price Analysis
The bulls pushed XRP above the 20-day EMA ($0.53) on May 6, indicating that the corrective phase may end.
The flattish 20-day EMA and the RSI just above the midpoint suggest a balance between supply and demand. If the bulls drive the price above the 50-day SMA ($0.56), this advantage will tilt in their favour of them. The XRP/USDT pair could then pick up momentum and climb to stiff resistance at $0.67.
The bears are likely to have other plans. They will try to protect the 50-day SMA and pull the price back below the 20-day EMA. If they do that, the pair may plummet toward the crucial support zone between $0.46 and $0.41.
Toncoin (TON) Price Analysis
Toncoin rose above the moving averages on May 3, indicating that the lower levels are attracting strong buying by the bulls.
The relief rally will likely face selling in the zone between the 50% Fibonacci retracement level of $6.13 and the 61.8% retracement level of $6.49. If the price turns down from the overhead zone, the bears will try to strengthen their position by pulling the TON/USDT pair below the moving averages. That could tug the price to the pivotal support at $4.72.
On the contrary, if the price breaks above $6.49, it will signal sustained buying at higher levels. That could lead to a possible rise to $7.24 and thereafter to $7.67.
Dogecoin (DOGE) Price Analysis
Dogecoin’s recovery is facing selling at the 50-day SMA ($0.17), but a minor advantage in favour of the bulls is that they have not allowed the price to slip below the 20-day EMA ($0.15).
If the price maintains above the 20-day EMA, the bulls will take another shot at the 50-day SMA. Repeated retests of a resistance level tend to weaken it. If this level is removed, the DOGE/USDT pair could rally to $0.21.
If bears want to prevent the upside move, they must quickly pull the price back below the 20-day EMA. If they do that, it will suggest that the bears remain active at higher levels. The pair may then drop to $0.12.
Cardano (ADA) Price Analysis
Cardano again turned down the 20-day EMA ($0.47) on May 6, indicating that the bears continue to defend the level aggressively.
The bulls are trying to defend the $0.46 support because if this level breaks down, the ADA/USDT pair could retest the crucial support at $0.40. Buyers are expected to defend this level fiercely.
Contrary to this assumption, if the price turns up from the current level and breaks above the 20-day EMA, it will signal that the selling pressure is reducing. The pair could then attempt a rally to the overhead resistance at $0.57.
