The Bitcoin price broke above a key resistance: is this bullish?
- 30 November 2022
- Posted by: Vincenzo Stefanini
- Categories: Financial News, Investing & Trading, Money
Bitcoin Technical Analysis – Daily Timeframe
The Bitcoin price broke above the 21-day MA (blue moving average) today.
This is a positive sign, as the price has been trading below this key moving average for many days.
If the price can stay above it and break the resistance at $17,000, we could see a retest of the $17,600 resistance level.
On the other hand, if the Bitcoin price doesn’t hold the 21-day MA, it will likely retest the support level at $15,400.
Overall, for the past few weeks, the Bitcoin price has been trading sideways in a range between around $15,400 and $17,600 and it’s still not able to break outside this range.
The break outside this wide trading range, in any direction, will likely be a strong move with high volatility.
The price is still trading well below all the key moving averages, which is a bearish sign, however, if this break is confirmed, it could be the beginning of a new potential uptrend.
The daily RSI is still in the bearish area, at 46, but higher than yesterday.
On the fundamental side, the bitcoin price is influenced by the FED’s monetary policy, so we can expect some volatility today as Jerome Powell is going to talk at 18:30 GMT.
Sentiment Analysis – Crypto Fear and Greed Index
The “Crypto Fear & Greed Index” is still in “Fear” mode today, at 29, higher 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 and the 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 (long or short), 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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