Will Bitcoin’s rally sustain? DXY, SPX, GC and WTI could have the answer

cointelegraph.com:

Federal Reserve Chairman Jerome Powell said in a question and answer session hosted by the Cato Institute on Sept. 8 that the central bank will continue to hike rates until inflation is under control. However, these comments did not rattle the markets as much as most would have anticipated, indicating that traders might have already factored in a 75 basis point rate hike in the Fed’s next meeting on Sept. 20–21.

Bitcoin has been strongly correlated with the S&P 500 and inversely correlated with the United States dollar index (DXY) for the past several weeks. With the DXY cooling off after hitting a two-decade high, risky assets have been attempting a recovery.

U.S. equities markets are attempting to snap a three-week losing streak while Bitcoin (BTC) has soared above the psychological level at $21,000.

Does the rally in the equities and crypto markets indicate that the risk-on sentiment is back? Let’s analyze five asset classes to review their trends and determine where they might go in the next few days.

Bitcoin rebounded off the strong support at $18,626 on Sept. 7 and broke back above the breakdown level of $19,520 on Sept. 9. This may have triggered short-covering by the aggressive bears, which propelled the price above the 20-day exponential moving average (EMA) ($20,434).

The relative strength index (RSI) has risen into the positive territory and the 20-day EMA is flattening out, indicating that the bears may be losing their grip.

The 50-day simple moving average (SMA) ($21,981) may act as a minor hurdle, but if bulls overcome it, the BTC/USDT pair could rally to the overhead resistance at $25,211. A break and close above this level could complete a double bottom pattern. Such a move may signal the start of a new