- Bitcoin found a bottom at $28,003 after 9 weeks of losses
Market sentiments is now upbeat
Bitcoin Poised To Break The $31,500 Resistance
Bitcoin is showing signs that the coin has reached its bottom after 9 weeks of losses. The price of the digital currency hovered around the $30k mark before breaking a support that has held for 10 months, prompting concerns that BTC would test lower lows around $24k.
available at BitStamp shows that on Monday, May 30, Bitcoin traded at $30,375, a price that it dropped to on May 9, after 10 months. With the recent market sentiment, it is anticipated that the price of the asset will see higher values in the coming hours and days.
Boost in Market Sentiments
This is despite the fact that there isn’t much difference between the current price and what has subsisted in the past 3 weeks or so. What has changed is that they are now upbeat as seen from market data.
Bitcoin price is up by 3.5% in the past 24 hours, as seen from Coinmarketcap. Its 24 hour volume, currently at $29 billion is up by 64%, while its market capitalization is also up by 3.6% at $579 billion. With the positive market sentiment, the price of Bitcoin can only move in the upward direction in the next few days.
Bitcoin Overbought At The Moment
Technical indicators such as the 10-days moving average and 20-days moving average shows that BTC is now in an uptrend. However, looking at the Relative Strength Index (RSI), which has the value of 70, it is obvious that Bitcoin is already overbought.
This means that the bullish momentum the price will still go into correction mode before it can build on the momentum. What happens afterwards is anyone’s guess.
This assertion can be validated from the analysis of the YMGroup which says:
“Despite the fact that the BTC [was] inside the accumulation price made a re-low which I told you in my previous ideas. This is a good signal for the next possible upward BTC movement. For a start I’m waiting for the BTC movement to reach resistance level 31500$. After breakout of resistance level price can hit the middle target at 33.000$. And after this main target will be at level 35000$ ”