Bitcoin’s price dipped below $37,000 on the last day of the week as selling pressure increased and the overall market risk appetite weakened. November was a promising month with BTC reaching new highs for the year and altcoins experiencing significant rallies. So, what’s next?
The S&P 500 Index continued its rally by rising above the downtrend line, signaling strong demand. The performance of US stock markets reflects not only the crypto sphere but also the macroeconomic situation. Increasing optimism that the Federal Reserve could cut interest rates faster has helped stocks rise.
If the index remains above the 20-day exponential moving average (4,448), it would be a strong sign for the continuation of the bull market. This could set the stage for a more substantial break above the 4,650 level. Otherwise, a loss of this region could lead to a drop to the 4,346 level.
The DXY tracks the performance of the US dollar against a basket of selected currencies. As the dollar strengthens—that is, as the DXY rises—risk markets (stocks, BTC, etc.) lose value. The Dollar Index (DXY) attempted a recovery from 103.46 on November 21 but stalled the next day at 104.21. It is now targeting the 102.55 level.
If there are no closes above the 104.54 level, the decline may continue. Conversely, the 106 level could be targeted, and fear could rise again.
The leading cryptocurrency is forming an ascending triangle with closes above $38,000. Upward-sloping moving averages and the RSI being in the positive territory suggest that new highs are possible. If the $38,000 resistance is decisively broken, it would not be surprising to see the price hit $40,000. Furthermore, $41,160 will be critical for new highs.