Bitcoin Technical Analysis: Expect a strong move with high volatility
- 24 November 2022
- Posted by: Vincenzo Stefanini
- Categories: Financial News, Investing & Trading, Money
Bitcoin Technical Analysis – Daily Timeframe
For the past 2 weeks, the Bitcoin price has been trading sideways in a small range between around $15,400 and $17,600.
If the price can get above the first resistance at $17,000, the next target will be the $17,600 level.
On the other hand, if Bitcoin doesn’t hold the support level at $15,400, that would bring more downside to the price.
The price is still trading well below all the key moving averages, which is a bearish sign.
The daily RSI is still in the bearish area, at 41, but it has been moving higher recently.
In summary, the short-term (daily timeframe) still looks bearish.
The break outside this wide trading range, in any direction, will likely be a strong move with high volatility.
Sentiment Analysis – Crypto Fear and Greed Index
The “Crypto Fear & Greed Index” is still in “Extreme Fear” mode today, at 20, slightly lower than yesterday.
The sentiment has been negative for the whole month of November.
This is understandable due to the recent events in the crypto space.
The majority of investors remain bearish on Bitcoin, due to the failure of the FTX crypto exchange had the possible contagion to other exchanges.
The price of bitcoin has also lost its correlation with the stock market, since the FTX collapse.
It’s likely that the price will continue to drop in the upcoming days, which could be a good opportunity for long-term investors to accumulate more.
Bitcoin Dominance
The Bitcoin dominance remains at around the 40% level.
It has been moving sideways between the 39% and 42% levels in the past 2,5 months.
It’s possible that the dominance will increase, as investors understand it’s safer to hold Bitcoin right now, rather than altcoins.
eToro Portfolio Update
I am keeping my long positions open on cryptos, but I currently have low exposure.
I also follow the stock market and could potentially open new positions, but I am waiting for the right time.
If you are already copying my portfolio, remain invested and keep the copy open.
If you are new, you can start the copy with a lower amount and add more every month.
Vincenzo Stefanini
eToro Popular Investor
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