The primary cryptocurrency took a downward turn on March 20 due to significant GBTC sales. Cryptocurrencies have been on a negative trajectory for almost 40 days due to the impact of war, rising inflation, recent US data, and regulatory actions by the SEC in the cryptocurrency space. What can be expected in May? Let's dive into outlooks for DXY, SPX, and BTC.

To grasp the path of Bitcoin prices, it is beneficial to analyze assets that have correlations, both positive and negative. Understanding the trends in SP500 and DXY is crucial not only to predict Bitcoin's movement but also to gauge the US economy’s current situation. In general, the Bitcoin price tends to move in sync with the SP500 during market ups and downs.

The S&P 500 Index has been trading below moving averages recently, but a lack of significant bearish movement suggests that fears of a more stringent economic policy by the Federal Reserve may not materialize. The index is currently at a critical juncture, situated around moving averages, with potential targets of 5,200 and 5,265 levels if there's an upward move. Conversely, a breakdown could see targets of 4,990 and between 4,953 and 4,821 levels. Market volatility might surge post the Fed's announcements, pushing the index in one of these directions.

The strengthening of the dollar is acting against Bitcoin, with the US Dollar Index (DXY) forming a rising channel pattern but showing signs of weakness recently. A fall towards the 104 level on the index could be beneficial for BTC and other altcoins.

Bitcoin's price is approaching a significant support level at $59,600, with a critical juncture for bulls to display strength. A bullish reversal might target the 50-day SMA at $67,091 for Bitcoin, while closure above a resistance-turned region could see a test of $73,777. Liquidation of short positions worth almost half a billion dollars could bolster an upward price movement. Alternatively, a downturn scenario could lead to a target of $54,298.