The volatility in the crypto market, particularly for spot Bitcoin ETFs, has been decreasing over the past four days. Currently, Bitcoin is trading at $41,184 and exhibits a chart pattern that suggests a potential short-term negative trend. Technical analysis of the two-hour Bitcoin chart reveals a falling channel formation, with recent support line breaks causing investor anxiety. However, closures within the formation have prevented further Bitcoin selling.
Key support levels to watch on the two-hour Bitcoin chart are $41,032, $40,687, and $40,295. A closure below the critical support at $41,032 could lead to increased selling pressure in the short term. Conversely, resistance levels to monitor are $41,236, $41,544, and $41,989. A closure above the significant barrier of $41,989 could accelerate Bitcoin’s price momentum.
The Bitcoin Dominance (BTCDOM) chart experienced a sharp increase following the approval of the spot Bitcoin ETF but subsequently faced a decline. The EMA 200 level has acted as a support, halting the downtrend. The BTCDOM is now consolidating, and a break of support or resistance will determine Bitcoin’s price direction.
Important support levels for BTCDOM are at 1963, 1920, and 1869. A daily closure below 1963 could lead to a decrease in BTCDOM and a relative gain in the altcoin market. Key resistance levels are at 2011, 2040, and 2082. A daily closure above 2011 could signal Bitcoin gaining momentum over altcoins.
Overall, Bitcoin’s short-term outlook appears cautious, with significant support and resistance levels likely to influence the direction of its price and market dominance.