Bitcoin managed to make over $ 10,000, but the euphoria behind the movement quickly evaporated.
The largest digital currency reached a resistance level in the area at $ 10,000, with the price reaching $ 10 194 on Sunday. Earlier in September, the price had the same unsuccessful attempt to move above that psychological level. The worrying thing is that a month later the price dropped by 14%.
In addition, BTC remains in the overbought area above 70 according to the 14-day RSI indicator. The strong resistance and the level of RSI imply a future short-term decline in price.
“This is a bullish market stuck in consolidation.” says Mike McGlone, an analyst at Bloomberg Intelligence. A key point remains whether BTC will emerge from the range with a break above $ 10K or $ 8K.
Source: Bloomberg Finance L.P.
Graphs: Used with permission of Bloomberg Finance L.P.
Trader Martin Nikolov