- Bitcoin has seen one of its first strong pullbacks posted in the time since its rally formed its latest leg higher that led it all the way up to $24,200
- The rejection here proved to be quite intense, as it sparked a selloff that led the crypto as low as $22,000 this morning
- The support here was quite intense and helped slow its ascent, with buyers aggressively stepping up to guard against a decline below here
- Where it trends next will likely depend on its continued reaction to this key level, as any sharp decline beneath it could give way for it to see some major downside
- One trader said in a recent tweet that multiple indicators are now suggesting that downside is imminent for the entire market
Bitcoin and the entire cryptocurrency market has been rocked by immense volatility over the past couple of days, with the selling pressure seen above $24,000 giving rise to the benchmark crypto facing a massive selloff.
One trader is now noting that a few indicators suggest Bitcoin’s rally is still over-extended and that the cryptocurrency may be positioned to see some serious near-term losses.
BITCOIN LOSES SHORT-TERM MOMENTUM AS SELLING PRESSURE MOUNTS
The crypto may now form a range between these lows and $23,000, with its near-term trend depending on which of these two levels are shattered first.
ANALYST: BTC SHOWS SIGNS OF BEING OVERHEATED
He notes that the cryptocurrency’s weekly RSI and Stoch RSI both suggest that the crypto is overbought at the moment.
“BTC – Weekly RSI and Stoch RSI significantly overbought. It has been a trending market and oscillators can remain overbought – but I’m just being cautious here…. Local top?”
Image Courtesy of TraderXO. Source: BTCUSD on TradingView.
The coming few days should shine some light on where the entire market will trend in the mid-term, as it should depend nearly entirely on Bitco