Following a roller coaster ride last week, the ardent interplay between Bitcoin’s bulls and bears saw high volatility but marginal changes in its price, hitting a high of $28,167 and a low of $25,328. Indeed, optimism is on the horizon for the bulls due to an intriguing divergence correlating price action and momentum indicators.
This year has seen Bitcoin losing its foothold on the 224-day ascending support line in mid-August, putting a halt to the uptrend that had been observed since early 2023. The breakdown arrived shortly after Bitcoin was thwarted by the robust $30,000 resistance level that had stayed erect since May 2022.
In August, we noticed Bitcoin’s RSI dwindling beneath the crucial level of 50, an event that remains unparalleled since the inception of the ascending support line. Sniffing out the bearish context, Bitcoin still found an ally in JPMorgan JPMorgan who predict the SEC’s approbation of a Bitcoin ETF in proximity.
Interestingly, the daily charts depict a bullish divergence building between price and the RSI momentum indicator. A situation which arises when momentum heightens as prices slump, typically hinting at an impending trend reversal. The RSI was also nudged out of oversold territory, which partly signals a reversal of fortunes in favor of the buyers.
Yet, the divergence has not propelled prices to greater heights with Bitcoin trading near August lows. Any further selling pressure could see Bitcoin plunge 4% lower to test support around $24,700. The light at the end of the tunnel, however, is a surge above $30,000 that would imply a 22% gain from the current level.
A new trading week kick started, unveiling new chapters of opportunities in the cryptocurrency market. Coins like POW, TOTO, and Chainback have claimed the spotlight on the crypto gainer’s list on DEXTools.
Pepe of Wallstreet (POW) stole the show with an electrifying performance, registering a stellar 4,735.65% surge before finally resetting at an impressive daily gain of 2,907.15%. Similarly, Totoro Inu (TOTO) has shown substantial gains, seen in the exhilarating 1,160% surge. Less volatile than its counterparts, Labrador (LAB) exhibits a steady increase in value, marking 235.18% on the day.
All said and done, as with any high-risk asset class, the blockchain market, presents both exciting potential and discerning risk. In the words of a poker player, know when to hold ’em, know when to fold ’em. With careful analysis and informed decision-making, the opportunities in the world of cryptocurrencies continue to grow.
Source: Cryptonews
