Bitcoin: Why Doom Might Be Upon Us
Bitcoin's record-breaking growth has gone far from unnoticed. It took a mere 18 days to go from the last ATH of 20k to the most recent one of 34.7K.
Today, the weekly RSI is displaying a strong downward turn after a record value of 94.5, severely overbought. To see what is next, we will take a look at the 2017-2018 market rally. Here, the RSI was strongly overbought (>80) on several occasions. Every occasion led to a short term sell-off of around 38% on average. Seeing that we didn't have a sell-off yet after the RSI displayed values of more than 80, now might be the time.
Assuming Bitcoin will drop 38%, the price might drop to 22k, potentially hitting the strong support at 20k. After the RSI drop, Bitcoins value rallied most of the time, so waiting for the RSI to cool off might be a great investment opportunity in the long term.
Today, the weekly RSI is displaying a strong downward turn after a record value of 94.5, severely overbought. To see what is next, we will take a look at the 2017-2018 market rally. Here, the RSI was strongly overbought (>80) on several occasions. Every occasion led to a short term sell-off of around 38% on average. Seeing that we didn't have a sell-off yet after the RSI displayed values of more than 80, now might be the time.
Assuming Bitcoin will drop 38%, the price might drop to 22k, potentially hitting the strong support at 20k. After the RSI drop, Bitcoins value rallied most of the time, so waiting for the RSI to cool off might be a great investment opportunity in the long term.
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