Top 6 Crypto Charts To Keep An Eye On, According to Lark Davis

The market sentiment obviously can change so fast in this market. Therefore, you have to be very well aware of it.

Understanding that, Lark Davis, a warm-hearted crypto expert has listed out the top of 6 charts that traders should keep an eye on. Some charts paint a pretty rough picture for the cryptocurrency markets.

S&P 500

The first chart that can paint the picture of the market is S&P 500. The S&P 500 tracks the prices of large-cap U.S. stocks or stocks of companies whose total outstanding shares are worth more than $10 billion. By following the S&P 500, you can easily see whether the largest U.S. stocks are gaining or losing value.

We have seen very much recently when the stock markets start taking a big dump, crypto tends to follow right along with it. Therefore, following up on this index can give you a foreseen of the crypto market.

Bitcoin 50-Week

The second chart to keep an eye on is Bitcoin 50-week. We should follow up this chart because what bitcoin does or doesn’t do has a knock-on effect for all of the altcoins correlations, all over the place. So we have the awareness of the 50-week moving average.

We really want to see the price rallying and closing back above the 50-week moving average, but that means when you get back about $45,000. In order to do that, the current market sentiment it’s a tough order basically.

Bitcoin MACD

The next chart to mention on the list is Bitcoin MACD. The cryptocurrency’s monthly moving average convergence divergence (MACD) histogram has crossed below zero, a so-called sell signal, indicating a bullish-to-bearish trend change on the longer duration price chart.

The MACD is currently flipped over into the red. A big crossover has happened here on the MACD. This has often been associated with the beginning of a much bigger sell-off event. The MACD started to reverse back up during the Covid crash, that single monthly candle. This is our second red monthly candle.

Bitcoin RSI

The next chart that needs to be awarded is Bitcoin RSI. RSI stands for the Relative Strength Index chart, it is a momentum based visualization for the Bitcoin market. We use the RSI to measure the speed as well as the magnitude of directional price movements in Bitcoin.

The RSI is coming down and being at a very low level and it can even go lower. It could mark a low or bottom point for the market but historically, we have seen the bottoms come in for bear markets. 

Bitcoin Support

The next chart to mention on the list is Bitcoin Support. Support, or a support level, refers to the price level that an asset does not fall below for a period of time. An asset’s support level is created by buyers entering the market whenever the asset dips to a lower price.

We find the support level of BTC is at $33,000. If we get lower than $33,000, that is not a higher low anymore and we are actually starting to bring in new lower lows, which is a bearish thing.

So these are key areas for us to be watching, no guarantees. We get down there but it depends on how much fear gets ramped up in the market over the coming days.

Fear And Greed Index 

Speaking of fear, there is a graph that shows the fear and greed of the market, the Fear And Greed Index. Crypto Fear and Greed Index measures the sentiment of the cryptocurrency market. While it is an indicator of the overall market sentiment, an investing decision has to be based on several other inputs.

The sentiment online is very grim overall. The market just keeps beating people down psychologically and it can be tough. These charts are painting a tough picture and fear is ruling the mind of investors.

Crypto has been and will continue to be the best performing asset class of this decade just not today. The market sentiment can change so fast in this market and traders should be very well aware of these charts.