KEY POINTS
1. Technical Analysis (TA) Indicators
Support and Resistance Levels: Key price zones where BTC historically bounces or gets rejected.
Moving Averages (MA):
50-day and 200-day MA: Golden Cross or Death Cross often signal bullish/bearish trends.
RSI (Relative Strength Index):
Overbought (>70) = possible correction.
Oversold (<30) = potential bounce.
MACD (Moving Average Convergence Divergence): Shows trend strength and possible reversals.
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2. Volume and Market Structure
Volume spikes confirm strong moves.
Breakouts from patterns (like triangles, flags, or ranges) often signal momentum.
Liquidity zones (from order books) show where big buy/sell walls exist.
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3. On-Chain Metrics
Exchange Inflows/Outflows:
High outflows = whales accumulating (bullish).
High inflows = possible sell pressure (bearish).
Bitcoin Supply Held by Long-Term Holders: Increase = market confidence.
Funding Rates (in futures):
High positive = over-leveraged longs (risk of correction).
Negative = more shorts, could signal a squeeze.
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4. Macroeconomic Factors
US Dollar Index (DXY): When DXY drops, BTC often rises.
Interest Rate News (Fed decisions): Tightening = bearish, easing = bullish.
Geopolitical events (conflicts, regulations, economic instability) can cause volatility.
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5. Sentiment and News
Fear & Greed Index: Extreme fear = possible bottom, extreme greed = possible top.
ETF inflows (like spot BTC ETFs): Major inflows = bullish.
Regulatory news: Crackdowns = bearish, legal
