In the cryptocurrency market, the upward momentum driven by Bitcoin continues to gain strength with each passing day. Recent weeks have seen fluctuations in spot Bitcoin ETF fund outflows and US macroeconomic data, resulting in short-term declines. Consequently, investors in the futures market have encountered significant losses. Now, the question arises: what can we anticipate for Bitcoin in the near future? Let's delve into the analysis together.
Bitcoin Chart Analysis:
Examining the four-hour Bitcoin chart reveals a prominent rising channel formation. Despite reaching new all-time highs, Bitcoin encountered resistance, leading to a price correction. However, it found support from both the support line and the EMA 200 (red line) level, enabling it to resume its upward trajectory. The breakout direction for Bitcoin, currently confined within a narrow range, will determine the trend direction. Key support levels to monitor on the four-hour chart are $69,625, $68,601, and $67,672. A close below the crucial support level of $69,625 could signal a loss of momentum for Bitcoin.
Conversely, important resistance levels on the Bitcoin chart include $70,706, $71,634, and $72,617. A close above the $70,706 level would bolster Bitcoin's momentum, potentially driving its price higher.
Bitcoin Dominance Chart:
The Bitcoin dominance chart exhibits a narrowing wedge formation. A recent breakout above resistance acted as a bull trap, followed by the last bar closing below the EMA 200 level on the four-hour chart. This suggests a shift in investor preference towards altcoin projects over Bitcoin. Key support levels to monitor on the Bitcoin dominance chart are 53.52, 53.34, and 53.13. A close below the 53.13 level, coinciding with the formation support line, could result in Bitcoin losing value compared to altcoin projects, diminishing investor interest.
Conversely, important resistance levels on the Bitcoin dominance chart include 53.80, 54.10, and 54.35. A close above the 53.80 level, intersecting with the EMA 200 level, would strengthen Bitcoin relative to the altcoin market, potentially attracting investor interest.
In summary, the analysis of both the Bitcoin chart and Bitcoin dominance chart provides valuable insights into the current market trends and potential future movements. Monitoring key support and resistance levels will be crucial in gauging Bitcoin's performance relative to altcoin projects in the coming period.
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