Since December 5th, Bitcoin has been unable to break a significant resistance level, creating selling pressure for the cryptocurrency. At the time of the article, Bitcoin was trading at $43,185, with all eyes on the United States. The SEC’s decision on spot Bitcoin ETF applications is highly anticipated and will impact the entire crypto ecosystem.
In Bitcoin’s daily chart analysis, the first notable pattern is the rising channel formation. Bitcoin touched the support line in the second week of October, followed by a resistance break on December 5th, suggesting a positive scenario for its price. However, the continued inability to surpass the resistance level since that date could lead to increased selling pressure.
Key support levels to monitor on Bitcoin’s daily chart are $42,219, $40,348, and $38,310. A daily bar close below the $40,348 level, where the formation’s resistance line intersects, could intensify the selling pressure on Bitcoin.
On the flip side, important resistance levels to watch are $44,681, $47,362, and $49,639. A daily bar close above the recently challenging $44,681 level could potentially accelerate Bitcoin’s price momentum.
The Bitcoin Market Dominance chart indicates a significant shift, with a recent decline suggesting the start of a new phase. As with previous rallies, investors tend to diversify into different crypto assets after a saturation point in Bitcoin investments, a trend initially signaled by the Bitcoin Market Dominance chart.
Critical support levels on the Bitcoin Market Dominance chart are 1946, 1888, and 1795. A daily bar close below the 1946 level, intersecting with the EMA 200 line, could signal a decrease in Bitcoin’s dominance and trigger an altcoin rally. Conversely, resistance levels to note are 2009, 2083, and 2148, with a close above the 2083 level, intersecting the EMA 21 line, potentially increasing Bitcoin’s market dominance and investor preference for Bitcoin.