According to Bloomberg, Bitcoin’s withdrawal last week is excited about where the next move will be, while technical indicators show that a new uptrend may come in the near term.
According to the RSI in the overbought territory
According to the latest price trend, Bitcoin seems to be consolidating before the next bounce, which could take it back to $ 12,000, a resistance level that stretches back to last August. On the other hand, according to the 14-day Relative Strength Index (RSI), which measures the magnitude and continuity of the price movement, it is in the largest cryptocurrency overbought territory.
Another technical indicator shows that Bitcoin can move higher. The Envelopes Indicator, which shows the excessive purchase and sale status of the price, shows the price of BTC just below the upper limit of the band, which means a positive development.
Matt Maley, Miller Tabak + Co.’s chief market strategist, told Bloomberg on the subject, “Breaking the $ 10,000 threshold is very important and can take Bitcoin to higher levels, but it is now in the overbought zone and needs to breathe. It may be a horizontal course. Still, this will be limited to a 2-week period ”.
BTC, which rose to its highest level in the last 1 year at the beginning of the week, to $ 12 thousand, saw a sharp decrease as investors saw this opportunity to realize profit, according to some analysts.
“The coming months may be more active”
Craig Erlam, the chief market analyst in Oanda, said:
“The volatility we’ve seen in the last few weeks has shown us what this asset can do. After all, we are still talking about an immature economic instrument, and hard movements should therefore not surprise us. The breaking of $ 10,000 is an important development and the weakening of the dollar may accelerate this increase. As a result, there may be more gains and losses in the coming months. ”