Bitcoin Price Climbs Amid USD Weakness: Market Analysis 4/21

The Bitcoin price surged past the $88,000 mark on April 21, reflecting strength amid a falling U.S. Dollar Index (DXY). As the greenback lost traction, dropping to a three-year low below 98, cryptocurrencies and gold saw renewed bullish momentum.

Investor confidence in Bitcoin is growing. Arthur Hayes, co-founder of BitMEX and CIO of Maelstrom, suggested this could be the “final opportunity” to buy Bitcoin under $100,000. Hayes attributes this confidence to upcoming U.S. Federal Reserve moves, expecting liquidity injections through Treasury buybacks.

Large Bitcoin holders—often referred to as whales—have been actively increasing their stakes. According to Glassnode, addresses with 1,000+ Bitcoins rose from 2,037 in February to 2,107 by mid-April, suggesting upward price potential remains strong.

S&P 500 Index Overview

The S&P 500 (SPX) attempted a rebound but struggled to break past the 20-day EMA near 5,399. Immediate support is found around 5,119. If this breaks, the index may fall to between 4,950 and 4,835, where buyers are expected to be active. On the upside, a close above 5,500 would suggest the correction phase is ending.

US Dollar Index (DXY) Breakdown

The US Dollar Index continued its downward trend on April 21, showing weak momentum. A further drop to 97.50 is likely; however, the RSI indicates the potential for a short-term bounce. If recovery attempts are rejected at 99–100.27, the index may fall further to around 95. A sustained move above 100.27 is needed to confirm any reversal.

Bitcoin Technical Outlook

Bitcoin currently trades near its 200-day SMA at about $88,238. Momentum indicators like the RSI are strengthening. If BTC/USD breaks this resistance, prices could rise toward the $95,000 level and possibly test $100,000 soon. Immediate pullback support lies near the 20-day EMA at $84,176. A break below could see prices revisiting $78,500.

Ethereum Trying to Rebound

Ethereum (ETH) attempts recovery after prolonged decline. It’s aiming to sustain above its 20-day EMA near $1,659. Challenges remain in the $1,754–$1,846 zone. A breakout above the 50-day SMA can open the path toward $2,111. Continued buying could eventually target $2,600. However, if ETH slips below $1,368, deeper losses could follow.

XRP Gains Momentum

XRP crossed above its 20-day EMA ($2.09), reducing bearish pressure. A clear path lies ahead if the token crosses the 50-day SMA at $2.21, targeting an upward channel resistance. If bulls sustain momentum, it could mark a trend reversal. Support remains at $2. If lost, the price may dip back to $1.72 or even $1.61.

BNB Turns Bullish

BNB broke above its descending trendline on April 21. A strong close higher could lead to a move toward $645, and possibly $680. Bears need to drag the price under $566 to invalidate the breakout. Continued consolidation or upward extension hinges on market sentiment in days ahead.

Solana Nears Key Resistance

Solana (SOL) is gradually advancing toward a critical resistance between $148 and $153. A bullish crossover in moving averages and a positive RSI suggest upward potential. A break above $153 could push prices toward $180. Conversely, failure to break resistance could keep the pair in a consolidation range down to $120.

Related: Bitcoin longs cut $106M — Are Bitfinex BTC whales turning bearish above $86K?

Dogecoin Shows Strength

Dogecoin is stabilizing around the 20-day EMA at $0.16. If bulls propel the price above the 50-day SMA at $0.17, DOGE could extend momentum to $0.21. On the downside, $0.14 remains a critical support. A drop below could drive prices to $0.13 and potentially $0.10.

Cardano Attempts Recovery

Cardano (ADA)‘s rebound sees it trading above the 20-day EMA at $0.63. Bulls aim for resistance at the 50-day SMA ($0.69). If crossed, ADA might climb toward $0.83 and eventually $1.03. Strong buying interest above the 20-day EMA would support upward continuation. But falling below $0.58 would shift the edge to sellers.

Chainlink Eyes Resistance

Chainlink rose above its 20-day EMA ($12.90) and now tests the 50-day SMA at $13.63. If bulls overcome this level, LINK could rally toward the upper channel, with $16 acting as a barrier. On the downside, $11.68 is crucial support. A breakdown could renew bearish control, sending prices lower.

Related: $2.3 Trillion Liquidity Shock: Franklin Templeton Says XRP Is Next in Line for Massive Inflows

Disclaimer: This article provides market insight and should not be treated as financial advice. Always perform your own research before investing.