These 2 Factors Show Bitcoin Price Will Drop After Colossal Surge to $8,800
Bitcoin has seen quick the surge over the past week. Per data from cryptocurrency markets site Coin360, the leading digital asset has gained 7.1% in the past seven days, rallying from the low-$8,000s to the current price of $8,750.
Earlier today, Bitcoin was trading as high as $8,880, surging higher as altcoins such as Ethereum, Litecoin, and Bitcoin Satoshi Vision saw an explosion in its volume and buying pressure.
Per a prominent analyst, there are two key factors that suggest bulls are currently overextended, suggesting a pullback is imminent.
Bitcoin Drop On Its Way
Josh Olszewicz, markets analyst at Brave New Coin, recently drew attention to two factors that suggest Bitcoin may fall or range trade at the current price range of $8,700 to $8,900.
The first is that Bitcoin has formed a bearish divergence between the Relative Strength Index (RSI) and the price on a four-hour basis, suggesting a pullback.
This Technical Pattern Suggests Ethereum Is Gearing For Another Lift-Off
Tuesday January 21, 2020
Ethereum is trading nicely above the $162 and $158 support levels, similar to bitcoin above $8,500. ETH price is likely forming an inverse head and shoulders pattern, suggesting a fresh increase. Ether price is...
The post This Technical Pattern Suggests Ethereum Is Gearing For Another Lift-Off appeared first on 12bitplay - Bitcoin Play.
RSI bear div
likely chill for a bit here pic.twitter.com/pyt3jx8Qe8
— Josh Olszewicz (@CarpeNoctom) January 14, 2020
These Three Crypto Assets Are Least Correlated to Bitcoin, Data Shows
Wednesday January 22, 2020
Out of more than 5,000 high and small-cap crypto assets, only three have displayed close to zero correlation with bitcoin. A Binance Research report published earlier Wednesday named ATOM as the cryptocurrency that is...
The post These Three Crypto Assets Are Least Correlated to Bitcoin, Data Shows appeared first on 12bitplay - Bitcoin Play.
And secondly, there has been a “big spike on OKEx Quarterly contract premium also suggests bulls overextended here,” drawing attention to a chart that shows previous premiums between the spot market and OKEx’s futures market preceded blow-off tops and price declines. x
Joe McCann, a popular cryptocurrency trader and Cloud/AI specialist has seemingly corroborated this sentiment that a pullback is possible.
At the peak of this move, he noted that the predicted BitMEX funding rate hit a jaw-dropping 0.2%, showing that bulls are exuberant.
Although McCann did not comment on the exact significance of this metric, extreme BitMEX funding rates, which shows the overall bias of traders in markets, often lead to reversals in the opposite direction of the extremes.
Related Reading: Crypto Tidbits: Elon Musk Pokes Bitcoin Bear, Japanese Giants Delve Into Cryptocurrency Mining, Baidu’s Blockchain Beta
Uptrend Will Likely Stay Intact
While there is a short-term pullback building, the medium-term trend still seems to be in favor of bulls.
Per previous reports from NewsBTC, Mohit Sorout, a partner at Bitazu Capital, noted that with BTC’s latest spike higher, it has broken above two key downtrend resistances that have constrained price action for the past seven months.
Not to mention, the one-day Relative Strength Index (RSI) and On-Balance Volume (OBV) indicators have broken past similar downtrends, suggesting more upside is imminent, even if there is a price pullback.
Related Reading: This Late Night Host Just Exposed Millions to Bitcoin, Again
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Altcoin Market Preparing Shocking Disbelief Rally According to Wall Street Cheat Sheet
Wednesday January 22, 2020
Last week, the altcoin market and many individual crypto assets broke out from downtrend resistance and went on a massive rally. However, for the first time since the crypto hype bubble collapse, the crypto...
The post Altcoin Market Preparing Shocking Disbelief Rally According to Wall Street Cheat Sheet appeared first on 12bitplay - Bitcoin Play.