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A few developments to watch out for

Bitcoin has held relatively steady above $50,000 for about five days. In the meantime, the volume has kept falling, and the number of large speculators (Bitcoin addresses with balances exceeding 1,000 BTC) has marched higher (there was a slight drop in the figure yesterday, though). Simultaneously, the RSI has continued to trend in the overbought territory on the daily chart, and the MACD has begun to flatten. A breakdown in the RSI below 70 points will be bearish, and the same applies to a crossover between the MACD line and the signal line. Similarly, a case for a pullback in Bitcoin could be strengthened in the case of a major weakness in the stock market; as Bitcoin stays highly correlated with stocks (especially tech) and still behaves much like a risk asset, the quickly changing sentiment in the stock market might be worth monitoring. Nevertheless, the daily time frame remains bullish for now (with signs of weakening momentum).

Illustration 1.01

The volume has been declining across various crypto exchanges. Generally, the declining volume accompanying the rising price is a questionable development.

Illustration 1.02

The picture above shows simple support and resistance levels derived from past peaks and troughs. Interestingly, Bitcoin has not yet taken out resistance from the prior bull market at $52,956 (established on 7th September 2021).

Technical analysis gauge
Daily time frame = Bullish
Weekly time frame = Neutral
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of multiple indicators.

Please feel free to express your ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor or any other entity. Your own due diligence is highly advised before entering a trade.