Say what you will about the crypto market, but just when you think you’ve figured it out, it will throw out a curveball to keep you on your toes. The breakout on Bitcoin just over a week ago seemed like it had legs – after 2 weeks of consolidating, it had finally reached new highs.
But from there, looking at the daily charts, the king of crypto seems to be running out of steam. More importantly, there are other signs of exhaustion, with an RSI divergence developing over the last 2 weeks despite the aforementioned new all-time high. And now, it even looks like it’s broken down below tentative support at around the $62,000 mark.
On the weekly chart, BTC offers no solace either. The candle for this week has very decisively moved downwards and there are still a few days in the week left. RSI had peaked a while ago, even on this longer timeframe, and traders are forced to ask themselves if the bulls are finally getting too tired to run for the time being.
Despite all this, at the end of the day, it is Bitcoin in an overall bull market. Even traditional financial markets seem to be on a rampage. Venture capital and private equity valuations are going through the roof – no one seems to want to hold fiat anymore. In crypto, pullbacks have been wide and plenty, but so have the rallies. Where some see an opportunity to short, some see an opportunity to buy the dip. And that brings us today’s question – Will current level hold?
Although it looks like there’s room for a precipitous fall from here, that’s what all eagles see all the time. So maybe holding onto open longs has the potential for big payoffs. They say markets like to move down with as many people on board and move up with as few people on board. If that’s true, this last week has shaken out many of the new, bandwagoners and may actually be setting up for a spectacular bull run.