Bitcoin is oversold
|Bitcoin, the cryptocurrency king, is still suffering from the weekend’s hangover, and Bitcoin price is finding it difficult to recover its losses that it suffered over the weekend.
The Bitcoin price needs to break above the 50-day SMA on the daily time frame and stay above this average. Otherwise, it is highly likely that the price not only tests its next psychological support of 50K, but in fact, it may break below that price level.
The Relative Strength Index, the RSI, shows that Bitcoin price is oversold, which could be an opportunity for those sitting on the sidelines watching the Bitcoin price hitting new all-time highs.
On the fundamental side, the biggest risk is what the SEC will have to say about Bitcoin as the Biden administration is working on some regulatory framework for cryptocurrency. The SEC has certainly crackdown on the SPAC craziness, and it is likely that it may take some wind out of the current optimism that we have among cryptocurrency traders.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.