Bitcoin Price Aanlysis: Key Technical indicators to watch
Luisa Crawford May 19, 2023 02:06
Key Technical indicators to watch and Altcoin Season is coming
Key Technical indicators to watch
In our previous analysis, we observed that both the major support and resistance levels remain operative. Presently, Bitcoin is in a consolidation phase in the short term.
Taking a look at the 4-hour chart, we can note that Bitcoin has been on a downward trajectory since its peak at $31,000. The 55-period moving average constitutes a key resistance level, currently pegged at $27,042.
Source: Tradingview
Turning our focus to the daily chart, we find that the 89-period moving average stands as the principal support level, situated currently at $26,780.
Impending Altcoin Season
The BTC dominance chart presents an intriguing scenario – it appears to be forming a diamond top pattern. This pattern typically indicates an imminent, significant downtrend. In layman's terms, we can infer that altcoins, especially those paired with Bitcoin like ADA/BTC and LINK/BTC, may outperform Bitcoin in the near future.
Source: Tradingview
Image source: Shutterstock