Cryptocurrency analyst and dealer Kevin Svenson is warning that Bitcoin (BTC) might endure a big correction earlier than revisiting the all-time excessive.
Svenson tells his 71,200 YouTube subscribers in a brand new video that Bitcoin is in overbought territory on the weekly chart primarily based on the Relative Power Index (RSI) indicator.
The RSI measures the value momentum of an asset on a scale of 0 to 100 with a degree of 30 and beneath indicating oversold circumstances whereas a studying of 70 and above suggests overbought circumstances.
“[On] the weekly chart for Bitcoin, we’re sitting in a really peculiar place and that’s being above the 70 degree on the weekly RSI…
If we will’t maintain 70, that’s while you get these pullbacks. That’s when issues begin to come down closely. So long as we’re bouncing off of 70, that’s what I name an influence development. That’s once we ought to anticipate the development to be maintained.
If we fail 70, if we come again down, let’s say we bounce off of it after which finally break beneath, that’s the place you’re going to be searching for your correction. That’s the place issues are possible going to see some ugly liquidations at that time.”
In keeping with Svenson, Bitcoin is more likely to face an “space of heavy resistance” between the $57,000 and $60,000 value degree.
“So if we now have [spot Bitcoin] exchange-traded fund (ETF) approval plus pumping-like bullish hypothesis and all people that has simply aped into the market is rewarded, properly we’re going to change into actually top-heavy for Bitcoin.
And if we attain this zone [$57,000 – $60,000] with no correction beforehand, that’s the place I’d assume we’d most likely see a flush earlier than gearing up for the all-time excessive break. A remaining flush is all the time potential.”
Bitcoin is buying and selling at $43,737 at time of writing.
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