Last week the world’s first cryptocurrency, Bitcoin, was too close to losing $18,000 area due to an increased inflation data. However, the lead cryptocurrency has managed to open the week on a positive note. However, the global crypto market cap is still under $1 trillion.
Currently, Bitcoin is trading at $19,510 after a surge of 1.93% in the last 24hrs. Meanwhile, the same is with Ethereum, Cardano, Solana, Polygon among others.
On the other hand, crypto traders have now turned towards technical analysis (TA) to understand the indicators which indicate future days of a currency.
Bitcoin To See Massive Selling Pressure
As per technical analyst, Matthew Hyland, the first indicator is the Relative Strength Index (RSI) and the 3 day RSI of Bitcoin is indicating a bull run. If Bitcoin’s price and the RSI is combined there is an indication for massive selling pressure.
RSI is basically an indicator that tracks the price fluctuations to understand if the currency is overbought or oversold. Currently it is pointing towards overbought above 70 suggesting a sell.
The analyst claims that the Bitcoin’s current movement is much similar to that of 2018 during which the 3 day RSI had increased and BTC had formed a descending triangle in Oct. This kind of formation is a sign of bear movement signaling for short position.
Meanwhile, another analyst Josh Rager indicates a formation of a bouncing ball pattern which suggests that there isn’t any good day for Bitcoin in the days to come.
However, it’s important to do our research before investing in any of the cryptocurrencies amidst such a volatility.