In the face of a resilient S&P 500 and a weakening U.S. Dollar Index, Bitcoin and select altcoins may find their short-term bearish trends curtailed.

Exhibiting admirable durability, the S&P 500 Index (SPX) has achieved five successive weeks of growth, marking the first occurrence since November 2021. Meanwhile, Bitcoin BTC $26,886 trails significantly below its April 14 peak of $31,000, presenting a pronounced discrepancy between these two asset classes.

Current conjecture suggests Bitcoin’s range-limited movements will endure for the foreseeable future. Crypto traders are searching for potential catalysts to elevate the price beyond its existing bounds. Market whispers, such as the possibility of Fidelity Investments following BlackRock’s Bitcoin spot exchange-traded fund application, could illuminate the market’s prospects.

Additionally, the past week’s softening of the U.S. Dollar Index (DXY) is seen as a boon for the cryptocurrency markets. A historical inverse correlation between the dollar and Bitcoin could serve as a check on Bitcoin’s bearish trend, triggering a relief rally.

Let’s now identify crucial resistance levels that need to be surpassed to instigate a prolonged recovery in Bitcoin and leading altcoins.

Examining the S&P 500 Index

The S&P 500 Index’s short-term uptrend has thrust the relative strength index (RSI) into overbought territory, hinting at potential minor corrections or consolidation in the near future.

The index may descend and revisit the breakout level of 4,325. If the price rebounds from this level, it would suggest the conversion of 4,325 into support by buyers. This scenario could enhance the potential for a rally to 4,500 and subsequently to 4,650.

Contrarily, if the price dips and breaks below the 20-day exponential moving average (EMA) of 4,283, it would imply a weakening bullish momentum, potentially pulling the index towards the 50-day simple moving average (SMA) of 4,180. A drop beyond this level may tilt the scale in favor of the bears.

Assessing the U.S. Dollar Index

Bulls’ failure to maintain the U.S. Dollar Index above the 20-day EMA (103) on June 12 triggered increased selling, forcing the index back below the 50-day SMA (102) on June 15.

With the 20-day EMA on a downward trajectory and the RSI in negative territory, control seems to have shifted to the bears. Sellers are likely to attempt to depress the price down to the critical support level at 100.82. A definitive break below this level would signal a renewed downtrend.

Conversely, a swift push by buyers to lift the price back above the moving averages would suggest potential ascent to the downtrend line. For a possible rally to 106, buyers would need to drive the price beyond this level.

Understanding Bitcoin’s Performance

Bitcoin has been adjusting within the descending channel pattern over several weeks.

The flattening of the 20-day EMA ($26,389) and the midpoint climb of the RSI suggest a potential reduction in selling pressure. Buyers will likely aim for the channel’s resistance line. A break and closure above this line could signal a new upward trend.

Alternatively, a sharp price drop from the current level would imply that bears continue to sell on rallies. The BTC/USDT pair could then retest the solid support zone between $25,250 and $24,800.

Diving into Ether’s Performance

Despite facing selling resistance at the 20-day EMA ($1,766), Ether’s ETH $1,736 recovery attempt remains relatively undeterred, as bulls prevent a price fall below $1,700.

If the price bounces from $1,700, the ETH/USDT pair will aim to rally above the 20-day EMA once again. If successful, it would indicate a potential end to the short-term correction phase, with an initial rise to $1,928 and later to $2,000.

In contrast, if the price drops from the current level and breaks below $1,700, it would indicate that the bears still have the upper hand. Although there is minor support at $1,600, a breach of this level could trigger a plunge to $1,352.

Insights into BNB’s Progress

BNB’s BNB $243 relief rally is encountering resistance at the 38.2% Fibonacci retracement level of $252.50. However, a positive indicator is that the bulls have maintained a firm footing, preventing a major price drop.

The bulls will likely mount another offensive to propel the price beyond the overhead resistance zone, between $252.50 and the 20-day EMA ($259). If successful, the BNB/USDT pair may ascend to the 61.8% retracement level of $272.50, an area where the bears are expected to mount a strong defense.

Contrastingly, if the price falls from the current level or from the overhead resistance, it would suggest that the bears still hold the reins. The pair could then revisit the pivotal support at $220.

A Closer Look at XRP

XRP’s XRP $0.49 price was repeatedly pulled under the 50-day SMA ($0.47) between June 14 and 17, but the bears failed to maintain the lower levels. This indicates dip-buying activity.

Bulls are currently striving to push the price beyond the 20-day EMA ($0.49). If they succeed, it could signal that the XRP/USDT pair may oscillate between the 50-day SMA and $0.56 for some time. The flattening 20-day EMA and the RSI around the 50-mark suggest possible short-term consolidation.

However, to retain control, bears must promptly pull the price below $0.45. That could amplify selling pressure, dragging the pair down to $0.41.

Understanding Cardano’s Movement

Despite the RSI indicating heavily oversold conditions, the bulls are finding it challenging to instigate a recovery rally in Cardano ADA $0.261.

Bears are attempting to depress the price to the crucial support level at $0.24. This level is significant, as a breach could potentially lead the ADA/USDT pair to slide to $0.22 and then $0.20.

Bulls, however, likely have different plans. They are expected to vigorously defend the zone between $0.24 and $0.22. If the price rebounds from this area, it suggests the pair might stabilize between $0.24 and $0.30 for a time. The initial sign of strength would be a break and closure above the 20-day EMA ($0.30).

Dogecoin’s Performance Examination

Dogecoin DOGE $0.06 has been hovering within a narrow range between the 20-day EMA ($0.06) and the horizontal support at $0.06 in recent days.

The DOGE/USDT pair’s inability to break above the 20-day EMA signifies that bearish sentiment persists, with bears offloading positions on every minor uptick. This situation heightens the risk of a fall below the vital support at $0.06. If this level capitulates, the pair may drop to $0.05.

On the contrary, the 20-day EMA remains a significant barrier for the bulls. If they manage to maintain the price above this level, the pair could rally to $0.08, a level that may present a formidable challenge for the bulls.

Investigating Solana’s Trajectory

Solana SOL $16 is currently entangled in a fierce tug-of-war near the $15.28 mark. While buyers have managed to drive the price above this level, the barrier at $16.18 remains unconquered.

Bears are trying to depress the price below $15.28. If they succeed, the SOL/USDT pair may slip to $14.06 and then to the support at $12.80. This is a crucial level to watch, as a breakdown here could lead to a steep fall to $10.

The first sign of bullish strength would be a breach above the zone between $16.18 and the 20-day EMA ($17.03). This could pave the way for a potential retest of the breakdown level at $18.70, where bears are expected to put up stiff resistance.

Assessing Litecoin’s Position

Bulls are working to keep Litecoin LTC $77.52 above the immediate support at $75, indicating buying at lower levels.

They will attempt to elevate the price to the overhead resistance at the 20-day EMA ($81), a level that’s likely to see intense bearish selling as they aim to retain control. If the price drops from the current level or the 20-day EMA, it could pave the way for a retest of the support zone between $75 and $70.

However, if bulls manage to elevate the price above the 20-day EMA, it could indicate a weakening bearish grip. In such a scenario, the LTC/USDT pair could rally to $90.