The weakness in the U.S. Dollar Index suggests that risky assets such as Bitcoin and the S&P 500 Index may remain in favor of the buyers. The S&P 500 Index (SPX) rose 2.24% last week, its third consecutive weekly gain. In comparison, Bitcoin managed a minuscule gain of 0.8%, indicating consolidation below $38,000.

The prospects for risky assets remain bullish as the U.S. Dollar Index has started to turn down. Cryptocurrency investors have not parted with their Bitcoin holdings, even after the 125% rally in 2023, indicating their long-term bullish view. Reflexivity co-founder William Clemente posted a chart sourced from Glassnode to X (formerly Twitter), which showed that 70% of Bitcoin in circulation has not been sold or transferred in the past year.

After finding support at the 20-day EMA ($35,925), Bitcoin has been gradually moving up toward the vital resistance at $38,000. The bears have guarded this level twice in the past; hence, they will try to do the same once again. If the price turns down sharply from the overhead resistance and breaks below the 20-day EMA, it may trigger the stops of several short-term traders.

That may start a correction in the BTC/ USDT pair, which could reach $34,000 and subsequently $32,400. Contrarily, if bulls pierce the $38,000 resistance, it will indicate the start of the next leg of the uptrend.

The pair may travel to $40,000, which is again likely to behave as a significant resistance. The rising moving averages and the RSI in the positive territory indicate that the path of least resistance is to the upside.

Lastly please check out the advancement’s happening in the cryptocurrency world.