As we approach April 2, all eyes are on Bitcoin’s crucial $80,000 support while the market awaits the announcement of new trade tariffs by the US government. Over the past week, Bitcoin (BTC) has experienced a downturn of 4.29%. Nevertheless, the bulls have intervened, pushing prices back above $83,500. The potential for a volatile market reaction looms as traders navigate the upcoming tariffs from President Donald Trump.
Despite the uncertainty, there’s an encouraging sign. Cryptocurrency exchange-traded products (ETPs) saw modest inflows totaling $226 million last week. This uptick indicates that lower price levels are starting to attract buyers once again. However, the market sentiment remains cautious as we approach the tariff announcement.
S&P 500 Index Analysis
The S&P 500 Index (SPX) faced challenges last week, having broken above the 20-day exponential moving average but subsequently revealing a bull trap. This downtrend intensified when the SPX dropped below the 5,600 support level on March 26. Currently, traders are watching the 5,500 mark closely: a breakdown here could lead to further declines towards the 5,400 and 5,100 levels, while a recovery above 5,800 could suggest a market bottom.
US Dollar Index Update
The US Dollar Index (DXY) continues to trade below the 20-day EMA, reinforcing a negative market sentiment. Bears might target a critical support level of 103.37, and if buyers can’t hold this level, it could plunge to 101. Conversely, if the index manages to close above the 20-day EMA, a potential upward trajectory towards 105.42 and the 50-day simple moving average of 106.09 may be on the horizon.
Analysis of Key Cryptocurrencies
Bitcoin’s immediate future lies under considerable pressure. The bears are aiming to push the price towards the critical $80,000 support. A minor uptick seen at $81,100 suggests the bulls are attempting to halt the decline. Should the price break past the resistance line, we may see a recovery with the potential to rally towards $95,000. The ongoing battle between buyers and sellers will determine the market’s near-term trajectory.
Ethereum (ETH) has hit the support level at $1,754, where bulls are making attempts for a relief rally. Resistance is expected at the 20-day EMA level of $1,980. A failure to overcome this hurdle could signal further declines. Meanwhile, XRP is facing a critical $2 support level, with a bearish sentiment dominating as it faces potential downward pressure.
In terms of altcoins, BNB, Solana (SOL), Dogecoin (DOGE), Cardano (ADA), and Toncoin (TON) are also experiencing movements that investors should watch closely. For instance, BNB has recently broken below key moving averages, indicating a potential further drop unless buyers can reclaim control. Similarly, Solana is testing key support levels around $120, while Dogecoin is struggling to maintain support at $0.16.
In conclusion, with numerous factors influencing the cryptocurrency market, including geopolitical developments and domestic economic policies, the coming days could prove pivotal for Bitcoin and other cryptocurrencies. Investors should stay vigilant and prepared for potential volatility.
