ππ Pullback almost guaranteed! Bitcoin must bounce at this level!
Bitget winner - 8186240670
Chart #1 - USDT Dominance (USDT.D) 3-Day Chart
Chartist: Sheldon
(For the chart screenshot, click here.)
At the beginning of 2023, USDT.D dropped sharply over the space of three weeks, from just below 9% down to 6.5%, where it found support.
That area has held over the last three months, as USDT.D has been ranging between there and the next resistance level at 7.4%. The daily support line from November 2021 also intersects there, acting as additional support.
If there is a move higher from here, the next resistance is at 8%.
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Chart #2 - S&P 500 Futures 4-Hour Chart
Chartist: Kyle
(For the chart screenshot, click here.)
The S&P 500 is in a very important zone.
There could be a lot of momentum to the downside if the yellow highlighted area is lost. The next target would be the mid-range level, at 3,920. Note that if that happens, essentially the higher low on the higher timeframe charts will be broken and momentum will begin to shift back to the downside.
As you can imagine, that would mean that crypto will have downside pressure too. Following on from an up-only move over the past few weeks means there are many inefficiencies.
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Chart #3 - Bitcoin (BTCUSD) 1-Day Chart
Chartist: Kyle
(For the chart screenshot, click here.)
Tying this in with the stock market analysis above, the entire up move has created a massive inefficiency! And inefficiencies have a tendency to get tested, so a pullback should almost certainly be expected.
If the pullback happens today, the pink box highlighted with the buy zone would be the target level ($24,000 - $25,000). We want to see immediate demand kick in there as if bitcoin closes a daily candle there or lower, things turn very bearish.
Note that the RSI will cross down if the price starts falling below $27,778. Which will add further momentum and pressure to the downside.
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Chart #4 - TOTAL 1-Day Chart
Chartist: Sheldon
(For the chart screenshot, click here.)
Over the past week, the TOTAL has been ranging and consolidating between support at $1.09T and resistance at $1.15T, with no defined direction in play.Β
There are still ongoing concerns regarding the banks in Europe that are putting pressure on the stock markets, but for now, they are not really affecting crypto in any big way.Β
Indicators on the higher time frames are overbought, so the TOTAL will either carry on consolidating here, or there could be a retrace back down to the next support level at $1.04T. That will reset the indicators, priming the TOTAL for another push upward. If it breaks through the current $1.15T area of resistance, the next one comes in at $1.2T.
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Chart #5 - Bitcoin Fear and Greed Index
The Bitcoin Fear and Greed Index is sitting at 61 today, indicating Greed.
The highest the index has been over the past seven days is 68, and the lowest is 57.
Overall Market Sentiment (Banterβs Take)
A pullback is overdue!Β
The burning question is where prices land up once that pullback occurs. As outlined in the charts, there is potential for a lot of downside momentum, especially for bitcoin. We want to see any dips get bought up incredibly quickly and reclaim a $26,000 BTC, or there is a risk of a much worse sell-off.
Stay safe my friends!
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