Price Analysis 9/23: SPX, DXY, BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT
US dollar strength continues to negatively impact risky assets, but that hasn't stopped Bitcoin and some altcoins to organize some strong rallies this week.
Price analysis
The S&P 500 index is down about 5% this week, while the Nasdaq Composite is down more than 5.5%. Investors fear that the Federal Reserve's aggressive rate hikes could cause an economic slowdown. The yield curve between two-year and 10-year Treasuries, which is closely watched by analysts to predict a recession, has inverted the most since 2000.
Amidst all the chaos, it is encouraging to see that Bitcoin (BTC) has outperformed both major indices and fallen less than 4% over the week. Could this be a sign that Bitcoin's bottom may be near?
Daily performance of the cryptocurrency market. Source: Coin360On-chain data shows that the amount of Bitcoin supply held by long-term holders in losses has reached around 30%, or 2% to 5% below the level that coincided with Bitcoin's bottom in March 2020 and December 2018. This metric suggests that Bitcoin may have more downside room before it hits bottom.
Let's study the charts of the S&P 500 Index, US Dollar Index (DXY), and major cryptocurrencies to determine if the trend will continue or if a reversal is likely.
SPXThe S&P 500 (SPX) index broke below the 3900 support on September 16th and the bears successfully defended the level in retests on September 17th and 21st. Therefore, this becomes an important level to watch as a break. above 3900 will be the first sign that the bulls are back.
US dollar strength continues to negatively impact risky assets, but that hasn't stopped Bitcoin and some altcoins to organize some strong rallies this week.
Price analysis
The S&P 500 index is down about 5% this week, while the Nasdaq Composite is down more than 5.5%. Investors fear that the Federal Reserve's aggressive rate hikes could cause an economic slowdown. The yield curve between two-year and 10-year Treasuries, which is closely watched by analysts to predict a recession, has inverted the most since 2000.
Amidst all the chaos, it is encouraging to see that Bitcoin (BTC) has outperformed both major indices and fallen less than 4% over the week. Could this be a sign that Bitcoin's bottom may be near?
Daily performance of the cryptocurrency market. Source: Coin360On-chain data shows that the amount of Bitcoin supply held by long-term holders in losses has reached around 30%, or 2% to 5% below the level that coincided with Bitcoin's bottom in March 2020 and December 2018. This metric suggests that Bitcoin may have more downside room before it hits bottom.
Let's study the charts of the S&P 500 Index, US Dollar Index (DXY), and major cryptocurrencies to determine if the trend will continue or if a reversal is likely.
SPXThe S&P 500 (SPX) index broke below the 3900 support on September 16th and the bears successfully defended the level in retests on September 17th and 21st. Therefore, this becomes an important level to watch as a break. above 3900 will be the first sign that the bulls are back.
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