The bitcoin has been maintaining its positive market position for a week. Traders are happy with the market and are fearless to invest more and more in it. Most of the market is hoping that bitcoin would get its past glory and once again the world would get attracted to it. The market has gone up by 102 %, and the trading of the USD/BTC on the largest crypto exchange in the US has hit $6,337.
As per one crypto analyst named Josh Rager, the weekly RSI of bitcoin has gone beyond 70. He also said that for the first time in these one and a half years this has happened. The USD/BTC pair was trying the level of $6,427 as a near-term resistance while the mark of $6,345 was supporting the probably upside growth of the market.
He also said that the market might be needed a pullback to maintain its sentiments to the neutral position. The analyst said that the required cryptocurrency a withdrawal, which would neutralize its market sentiment. He said that the whole market is waiting for bitcoin to cross the resistance level of $6400; however, the potential of the market to maintain the same growth after passing this resistance level is questionable, at least in medium term period.
If we pay attention to the past performances of crypto, one can see one pattern which is consistent. Whenever the crypto sees a momentum and crosses the mark of 70 in a weekly chart, it tends to start pulling back. The bitcoin price might start marching downward by around 39.2-percent after completing two weeks of crossing the range of 70. Bitcoin might experience a similar downside correction in a week of passing 70 too.
These cases are proofs that the trader’s behaviors are unpredictable and contradictory to the situation at times. And the present situation might not be an exception too. The possibility of the sentiment of pullback above $6,400 is likewise high. A sharp pullback won’t precisely haul bitcoin out of its solid bullish march.
Fidelity Investments, a Wall Street-has
announced that it would start buying and selling bitcoins for the benefit of
its institutional customers. Its CEO Abigail Johnson will be talking at the
forthcoming Blockchain Week NYC on the same.