Global perspective – what is crucial now
The situation on Bitcoin has been quite paradoxical in the last 2 weeks. While from the fundamental standpoint, we have experienced quite an eventful 2 weeks, the chart remains unscathed. Why could that be?
That is because we need to pay attention also to technical analysis. And that is based, apart from other factors, on levels and zones. And those have not been broken through yet. We are still in a narrow range and we have not overcome any level that would tip the scales towards one side or another. Therefore, the chart not only remains the same but is also the most-watched one in the world of cryptocurrencies.
If the bull market is to continue, we must maintain the level of 37-40K. If we close below these levels, then there is a high chance that this will simply not happen.
Figure 1: BTC on a daily chart
4H graph
The 4H chart is currently something I would not pay much attention to. For a very simple reason – it is indecisive. If someone were to decide based on the information obtained solely by looking at this chart, he could have experienced quite a mood swings, to say the least. We can see that the price is still in the triangle. Even though we have, in essence, already overcome the upper trend, I do not perceive it as a breakthrough. A genuine breakthrough from a triangle formation should come in the form of a hard candle with increased volumes. Unfortunately, I do not see this here. In addition, we are in the zone where the triangle, MA77, and day trend lines meet. I definitely do not consider this situation a triangle breakthrough rather I would say that it is 65% bullish and 35% bearish.
Figure 2: BTC on a 4H chart
S&P500
However, a look at the S&P500 chart is quite interesting, as it has fallen again significantly in the last few hours. Be that as it may, this had absolutely no effect on the price of cryptocurrencies which not only did not fall but rather grew. This factor also adds to the fact that the bull market is still in the game and that there is a chance that we will see a new ATH later this year.
Figure 3: S&P500 on a 4H chart
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