The tech company MicroStrategy, under its founder Michael Saylor, has recently added 12,000 Bitcoin to its holdings, purchased at an average cost of $68,477 each. This acquisition, funded by an $800 million convertible bond offering, brings MicroStrategy’s total Bitcoin investments to 205,000 units, averaging $33,706 per unit.
S&P 500’s Upward Journey Faces Potential Hurdles
The S&P 500 Index’s continued climb within an upward channel formation has recently been challenged. Bears defended the channel’s upper resistance on March 8, despite generally favorable conditions for buyers, suggested by ascending moving averages. However, the RSI indicates a potential near-term pullback or consolidation. A break below the channel could accelerate selling, while a rebound would signal continued positive sentiment and buying interest.
On the flip side, if bulls manage to elevate the index above the channel, this could lead to a significant surge toward new targets. The fate of the index hinges on the balance between bearish resistance and bullish ambition.
US Dollar Index Wrestles with Bearish Momentum
The US Dollar Index (DXY) has fallen below its 20-day EMA, with the bears holding strong against recovery efforts. This resistance, coupled with the index’s fall below the 50-day SMA and a key pattern’s neckline, points to a bearish outlook. With RSI approaching oversold conditions, the index might continue to decline unless it can overcome the 20-day EMA barrier, which could alleviate bearish pressures.
Bitcoin’s price action is a stark contrast to the DXY’s struggle, with the cryptocurrency breaking past $70,000 on strong demand. Indicators suggest bulls are steering the market, with potential price targets ahead. Only a significant dip below key EMA levels would hint at a trend reversal.