The surge that pushed Bitcoin (BTC) up greater than 2.4% to $88,000 right this moment could also be short-lived. Though it got here abruptly and was not broadly anticipated — particularly with Easter Sunday and an extended weekend — the surge brought about a palpable shift in sentiment amongst crypto market members.
From uncertainty, concern and doubt to greed, the temper modified rapidly, with some specialists now calling this the final likelihood to purchase Bitcoin earlier than it reaches $100,000 and even the $200,000 BTC predicted by Robert Kiyosaki.
However the harsh actuality could also be that the sudden rally is about to finish right here. There are various causes to help this prediction, however three specifically stand out.
The primary is that after right this moment’s surge, the worth of Bitcoin hit the 200-day shifting common on the day by day chart. Beforehand, Bitcoin broke via this necessary line in March, examined it in early April, noticed a rejection and has now returned to it — and as soon as once more failed to interrupt above it.
The second purpose can also be technical and includes the Bollinger Bands. It simply so occurred that the higher band of this fashionable indicator coincided precisely with the identical level the place the 200-day shifting common lies — additionally on the day by day time-frame. What’s extra, after the spike, Bitcoin hit the higher band, which might sign an “overbought” scenario for the main cryptocurrency.
Lastly, the third purpose is that on the weekly chart, Bitcoin’s RSI indicator has hit a trendline resistance that continues to carry after a earlier bearish divergence on the chart. A more in-depth look reveals a similarity to the scenario in September 2024.
However again then, BTC managed to interrupt above that resistance — whereas now, it has solely touched it.
Add to this the headlines screaming “all-time excessive” for gold, the narrative that Bitcoin is about to comply with within the valuable steel’s footsteps and Michael Saylor shopping for $555 million price of BTC.
Optimism is certainly within the air — however so are the right situations for yet one more merciless sell-off that finesses overexcited market members.
