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.
Author
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.
