TRENDING:
Oil price
XAU/USD
EUR/USD
GBP/USD
Silver
Sponsored by
|

Bitcoin is oversold

Bitcoin is oversold
Naeem AslamNaeem AslamZaye Capital Markets

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. 

Author

Naeem Aslam

Naeem Aslam

Zaye Capital Markets

Based in London, Naeem Aslam is the co-founder of CompareBroker.io and is well-known on financial TV with regular contributions on Bloomberg, CNBC, BBC, Fox Business, France24, Sky News, Al Jazeera and many other tier-one media across the globe.

More from Naeem Aslam
Share:

Editor's Picks

Democrats win House and Senate in US midterms: Why isn’t all bad news for crypto

Democrats win House and Senate in US midterms: Why isn’t all bad news for crypto

The biggest story this week was Tuesday’s US midterm elections, which saw Democrats win control of both the House and the Senate in a clear blue wave. This political shift in the US has triggered sharp price swings across the cryptocurrency market.

Ripple nears oversold territory as traders eye buying opportunities

Ripple nears oversold territory as traders eye buying opportunities

Ripple remains structurally capped near $1.20 after selling pressure wiped out the early-week rise to $1.34, driven by the US midterm elections. Market participants exhibited regulatory concerns ahead of the Democrats taking control of Congress in January, with many repositioning and adjusting their portfolios.

Bitcoin Weekly Forecast: Bears tighten grip as BTC eyes fifth weekly loss

Bitcoin Weekly Forecast: Bears tighten grip as BTC eyes fifth weekly loss

Bitcoin is down over 3% this week, trading near $75,500 on Friday and heading for its fifth straight weekly loss. A sharp sell-off in US technology stocks reversed Bitcoin’s post-election rally on Thursday, triggering a wave of liquidations across the market and intensifying bearish pressure.

Post-US midterm elections market sell-off weighs on PI

Post-US midterm elections market sell-off weighs on PI

Pi Network (PI) continues to attract sellers, as the post-US midterm results triggered a sell-off in the US tech stock market and also wiped out over $1 billion from the crypto market.

Bitcoin: Bears tighten grip as BTC eyes fifth weekly loss

Bitcoin: Bears tighten grip as BTC eyes fifth weekly loss

Bitcoin (BTC) remains under pressure, down over 3% this week, trading near $75,500 on Friday and heading for its fifth straight weekly loss. Persistent outflows from US-listed BTC spot Exchange Traded Funds (ETFs), a sharp sell-off in US technology stocks, and rising market liquidations are weighing on sentiment and limiting Crypto King’s recovery attempts.