In the cryptocurrency market, the upward momentum driven by Bitcoin continues to grow. Recent weeks have seen outflows from spot Bitcoin ETF funds and US macroeconomic data causing short-term declines, resulting in significant losses for futures market investors. The future outlook for Bitcoin is now under scrutiny.
Bitcoin Chart Analysis
A significant observation in the four-hour Bitcoin chart analysis is the formation of a rising channel. Despite reaching all-time highs, Bitcoin struggled to break the resistance line, leading to price corrections. Nevertheless, Bitcoin found support from the support line and the EMA 200 level (red line), prompting a new upward trend. The breakout direction for Bitcoin, currently in a tight range, will indicate the future trend.
Key support levels to monitor on the four-hour chart are $69,625, $68,601, and $67,672. A close below the crucial $69,625 support level could result in a loss of momentum for Bitcoin.
Important resistance levels on the Bitcoin chart include $70,706, $71,634, and $72,617. A close above $70,706 will give Bitcoin's price a boost.
Bitcoin Dominance Chart
The Bitcoin dominance chart reveals a narrowing wedge formation. The recent resistance breakout acting as a bull trap and the bar closing below the EMA 200 level on the four-hour chart suggests investor shifts towards altcoin projects over Bitcoin.
Crucial support levels on the Bitcoin dominance chart are 53.52, 53.34, and 53.13. A close below 53.13 could lead to Bitcoin losing value compared to altcoins.
Key resistance levels on the Bitcoin dominance chart are 53.80, 54.10, and 54.35. A close above 53.80 will strengthen Bitcoin's position against altcoins.
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