At Bitcoin, which hovers around $ 11,000, signs of weakness appear after a few days of rally. “We’re still not at the high point we should be,” said Ed Moya, senior analyst at Oanda Corporation. says.
The cryptocurrency market is almost overcrowded this week and is trying to take a new path upwards, but the market is facing a much larger test…
Bloomberg Galaxy Crypto Index, which measures the performance of the most traded cryptocurrencies including Bitcoin and Ether, is approaching the 500 level. The index tried to touch this point twice more during the year, but it was not successful. On the other hand, a technical measurement, known as the Relative Strength Index, was overbought in the rally in February at 80, and then almost hit a wall.
Bitcoin has experienced a serious increase close to 20 percent this week at a point where there is a lot of speculation due to the fact that support packages will trigger inflation due to US monetary policies.
Ed Moya, a senior analyst at Oanda Corporation, said in a comment to Bloomberg:
“We will have a catalyst to go further, because we are still not at the high point we should be. When you break these levels, you will see that the interest has increased and the upward momentum will strengthen with the contribution of the dollar weakness. Although 14-day relative strength indices show that Bitcoin and gold are in overbought condition, rises in cryptocurrencies can compete over time. Institutional investors’ entry into the market also provides a basis and support for these increases in the long term. ”