Analyst: The Bitcoin price could suffer a reset
Bitcoin has seen a sharp surge in the past week. According to data from the crypto website Coin 360, the leading digital asset is from the low 8. 000 dollar region at the current price of 8. 680 Dollar rose.
According to a prominent analyst, there are two key factors suggesting that the bull market is currently overstretched, which means that a pullback is imminent.
“Bitcoin Drop On Its Way” on the way)
Josh Olszewicz, market analyst at Brave New Coin, recently highlighted two factors suggesting that Bitcoin is at the current price range of $ 8. 700 to $ 8. 900 could fall or move in the range trade. The first point is that Bitcoin has formed a bearish divergence between the Relative Strength Index (RSI) and the price on the four-hour chart, indicating a pullback.
4h $ BTC
RSI bear div
likely chill for a bit here pic.twitter.com/pyt3jx8Qe8
– Josh Olszewicz (@CarpeNoctom) 14. January 2020
And secondly, there was a “big spike on OKEx” suggesting that the bulls are overwhelmed ”by drawing attention to a chart that shows the previous premiums between the spot market and the OKEx futures market Blow-off limits are.
Joe McCann, a popular crypto trader and cloud / AI specialist, appears to have confirmed this opinion. At the height of this move, he noticed that the BitMEX funding rate fell to 0.2%, showing that the bulls are exuberant.
Although McCann did not comment on the exact meaning of this metric, extreme BitMEX funding rates, which show the general distortion of traders in the markets, often lead to reversals in the opposite direction.
Upward trend will likely remain intact
While a pullback is forming in the short term, the medium-term trend still seems to speak for the bulls. Mohit Sorout, a partner of Bitazu Capital, found that the recent surge in BTC has broken two key downward resistances that have limited price action in the past seven months.
Not to mention that the one-day relative strength index (RSI) and on-balance volume (OBV) indicators have broken similar downward trends, suggesting that further upward moves are imminent, even if it is there is a decline in prices.
Proof of text: newsbtc