The sentiment of the cryptocurrency market can suddenly change. On this subject, popular crypto analyst Lark Davis listed in his recent Youtube video 6 Bitcoin charts that investors should follow closely. We have compiled the highlights of Davis’ analysis for the readers of Kriptokoin.com.
6 Bitcoin charts to consider
The S&P 500 is the first chart that can show the market trend. It typically analyzes the values of large-cap US stocks with a market capitalization of over $10 billion. As we have witnessed recently, crypto tends to follow suit when the stock markets take a big dip. As a result, following this index can give an insight into the crypto market.
- Bitcoin’s 50-week chart is the second chart to consider. The price is expected to rally and bounce back above the 50-week MA, but that won’t happen until it rebounds around $45,000.
- Bitcoin MACD is the third chart to highlight in the list. The monthly moving average convergence divergence (MACD) histogram of the leading crypto has dropped below zero, indicating a sell signal on the long-term price chart, indicating a trend shift from bullish to bearish. MACD is currently in negative territory. This is often associated with the start of a much larger sales event.
Bitcoin RSI
Bitcoin RSI is the next award-winning chart. It is used to calculate the size and speed of directional price movements in Bitcoin. The RSI is falling and is already at a very low level and there is potential for significantly more bearish. Current levels could be the bottom of the market, but historically bear markets have seen their bottoms come.
Bitcoin support is the next state to highlight in the list. A support level is the price level below which a crypto has not fallen for an extended period of time. BTC is currently holding the $33,000 support level. So, while there is no assurance, this area is critical to consider. Whether we fall here or not will depend on how much anxiety there is in the market over the next few weeks.
Fear and Greed Index: A measure of how cowardly and greedy investors are
When it comes to fear, the Fear and Greed Index is a graph that shows the fear and greed of the market. The fear and greed of the crypto market is measured by this index. While it is a good predictor of the general market mood, it is the only factor to consider when choosing an investment. Overall, the market mood is depressing due to macroeconomic factors. These charts look bleak and fill investors with anxiety.
Cryptocurrency market, strongest performing asset class of the last decade He’s been around, but he’s not at his best right now. Lark Davis’ advice is that market sentiment can change very quickly, so investors should pay close attention to the above indices and charts.
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