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Bitcoin Stumbles a Bit, Now Trading at $44K

Summary:
At the time of writing, bitcoin – the world’s number one digital currency by market cap – has taken a small dive. Over the past couple of days, the currency has been trading in the ,000 – ,000 range, and many thought the asset was making its way clear to K. However, it looks like once again bitcoin moved a little too quickly for its own good. The asset has since fallen back a bit into the low ,000 range, and many analysts are hoping BTC can take a breather. Bitcoin Is Falling Back Just a Tad Now, several of them are looking at technical indicators as well as other data to better understand where bitcoin will likely go in the coming future. Jason Lau – COO of the crypto exchange OKCoin – stated in a recent interview: With bitcoin moving cleanly upward

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At the time of writing, bitcoin – the world’s number one digital currency by market cap – has taken a small dive. Over the past couple of days, the currency has been trading in the $45,000 – $46,000 range, and many thought the asset was making its way clear to $50K. However, it looks like once again bitcoin moved a little too quickly for its own good. The asset has since fallen back a bit into the low $44,000 range, and many analysts are hoping BTC can take a breather.

Bitcoin Is Falling Back Just a Tad

Now, several of them are looking at technical indicators as well as other data to better understand where bitcoin will likely go in the coming future. Jason Lau – COO of the crypto exchange OKCoin – stated in a recent interview:

With bitcoin moving cleanly upward through $42K, the upper bound of the range it’s been stuck in for months, there are now eyes on a longer-term target of ATHs of $64,000. However, that might take a bit longer as there are some signs of fatigue, given this 55 percent run up. RSI is 80+, back at levels in late February and mid-March. Both those times, we saw BTC decline around 20 percent thereafter, but saw higher highs later.

Additional commentary came from David Keller, the chief market strategist at StockCharts.com. He explained:

Three key technical signals indicate a much more bullish configuration for bitcoin. First, the most recent pullback from the $42,000 level saw bitcoin drop only to around $38,000 instead of retracing all the way back to previous support at $30,000. This was soon followed by the break above $42,000, which overall indicates an increased buying power and positive momentum. Second, bitcoin is now above its 200-day moving average for the first time since May. The 50-day moving average is now sloping upwards for the first time since April. These moving average signals show a rotation from a negative trend to a positive trend and suggest further upside potential. Finally, the RSI is no longer showing a bearish divergence. For the first half of 2021, every push higher in bitcoin saw a lower peak in momentum. This bearish divergence suggested weakening price momentum and basically an absence of buyers. Now, we see the RSI has broken that pattern of divergence, with the RSI becoming overbought on the most recent upswing. This indicates a rotation from distribution phase to accumulation phase and a more bullish outlook should be warranted.

New Highs By Year’s End?

Lastly, Charlie Silver – CEO of Permission.io – stated:

All signals are showing that institutions have been going long and are accumulating. The weak hands have sold through this cycle and the strong hands have been buying. We may see another test of support, but the odds are high we can see new highs by the end of the year.

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