Are Bitcoin Prices At Risk Of A Pullback After Reaching Their Latest High?
Bitcoin prices climbed to a fresh, all-time high today, surpassing their prior zenith and rallying to almost $67,000.
The world’s most prominent digital currency reached $66,974.77 this morning, according to CoinDesk data.
Since then, the cryptocurrency has managed to retain almost all of its recent gains, trading north of $66,000 since attaining its new high, additional CoinDesk figures reveal.
Some market analysts have voiced concerns that bitcoin is overbought, pointing to technical indicators like the Relative Strength Index (RSI).
The RSI measures the extent to which an asset is either overbought or oversold by evaluating recent changes in price.
While a value of 30 or less for this indicator generally points to oversold conditions, a value of 70 or higher suggests an asset is overbought and may be headed for a change in trend.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
CoinDesk reporter Omkar Godbole spoke to this in an article published earlier today, stating that:
“The daily RSI is signaling overbought conditions. So, a possibility of a temporary pullback cannot be ruled out.”
Nick Mancini, research analyst at crypto sentiment data provider Trade The Chain, commented on this situation:
“There are currently several indicators signaling that BTC is in ‘overbought’ territory, but these indicators have actually been oversold for the majority of the month of October.”
He emphasized investor sentiment and market dynamics, offering a bullish take.
“We see some potential resistance for Bitcoin around $68,000, but as long as trader attitude remains bullish and, at the same time, trade volumes continue to increase, we expect Bitcoin to climb at least a few percentage points higher for this move.”
Brett Sifling, an investment advisor for Gerber Kawasaki Wealth & Investment Management, also spoke to the highly optimistic mindset of investors.
“The short-term market sentiment is very bullish,” he stated, “especially since we just broke all time highs.”
Armando Aguilar, vice president of Digital Assets Strategy for Fundstrat Global Advisors, provided a similar perspective, stating that the crypto markets are currently characterized by “extreme greed.”
He noted that “A 90+ RSI seems to match with previous BTC tops.”
Aguilar also spoke to bullish market dynamics.
“The capital inflows into BTC futures, the buying demand from spot BTC and overall macro conditions remain bullish,” he said.
“Additionally, the visual barrier of a new ATH and FOMO will play a role in keeping a level of momentum. Crypto market cap in October has gone from $1.9T to $2.6T.”
“I think there is still more room for BTC to run before a temporary pullback happens,” stated Aguilar.
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and sol.Source