Technical analysis has long been relied upon for investing in cryptocurrencies. The discipline lends itself well to the highly-volatile asset class, not only because cryptocurrencies are momentum-driven, but also because they are generally subject to less headline risk than equities, which can muddy supply/demand dynamics.
Investors can better understand the risk-reward dynamics of the cryptocurrency market by combining momentum indicators and overbought/oversold measures with the identification of key support and resistance levels. Investors can source relative strength inputs to help spot opportunities.Real-time analysis of the chart of bitcoin shows that, as of early-May 2024, there was a loss of intermediate-term momentum per momentum indicators like the MACD , which has a bearish crossover.
Most altcoins in the graph point lower and to the left, which reflects bitcoin’s strong position in the market, particularly during a corrective phase which sometimes sees a flight to safety . We would expect most altcoins in the lower left portion of the graph to eventually rotate into favor as more risk-on positioning resurfaces in a sign that the corrective phase has matured.in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin.