Bitcoin is Overbought – Ready For Dump
Bitcoin is now trading at $5270 (at the time of publishing) and has seen a growth of more than 25 percent in the past week. The crypto market is showing positive intention from the past month. Bitcoin making green candles from six consecutive weeks.
Bitcoin has seen a huge pump of 20 pecent in a night after someone bought $100 Million of BTC. The pump was real and now a lot of
The pump changes the market sentiments and also change the technical analysis of Bitcoin. The 50 MA (moving average ) is now in a strong upward movement. The 100 MA is also turning upward this is a good sign of trend change. Bitcoin is now trading above the 200 MA but still, the 200 MA is going downwards.
On the daily charts, the RSI (Relative Strength Indicator) shows that Bitcoin is overbought and need some correction for further upward movement. RSI is an indicator that is used to measure the speed and magnitude of price movements.
Bitcoin RSI is now at the peak (88) after the famous bull run of Dec 2017. Back in Dec 2017, the RSI was 94 and we all know what happened after that.
On the weekly chart, the 50 MA is the biggest resistance that is around $5700. The psychological resistance is $5700-$6000. The market faces heavy selling at these zones.
For a healthy increment, the RSI must come in the range of 45-60. Bitcoin will dump 10-15
Note: This is not a financial advice, Bitcoinik is not responsible for any profit or loss in the trades. This is an educational idea and everyone should do their own research before making any decision.
