- 16 November 2022
- Posted by: Vincenzo Stefanini
- Categories: Financial News, Investing & Trading, Money
Bitcoin Technical Analysis – Daily Timeframe
In the past few days, the Bitcoin price has been trading sideways in a small range between around $16,000 and $17,000.
If the price can get above the 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 $16,000, the next support line is at $15,500.
The price is now trading well below all the key moving averages.
The daily RSI is slightly outside the oversold zone, but still in the bearish area, at 34.
In summary, the short-term (daily timeframe) still looks bearish.
Correlation with the stock market
Bitcoin has also recently lost its correlation with the US stock market, as stocks rallied in the past few days.
Bitcoin dropped significantly, about -32%, since 6 November, while the S&P 500 gained more than 5%.
In the upcoming days will be important to understand if the two assets will be correlated again or if they start to go in different directions.
Sentiment Analysis – Crypto Fear and Greed Index
The “Crypto Fear & Greed Index” is still in “Extreme Fear” mode today, at 23, slightly better than yesterday.
Last week, the reading was a bit higher, but still in Fear mode.
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.
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.
The Bitcoin dominance is 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 that it’s safer to hold Bitcoin right now, rather than altcoins.
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