Bitcoin: the $90K milestone eyeing higher grounds
A crypto-supportive new US administration, brought a new fresh dose of optimism on the crypto market. The whole crypto ecosystem benefited from the optimism that the crypto industry and coins will have a certain future in the US, without a legal scrutiny, which was imposed by the SEC during the previous years. A strong funds inflow into the crypto market continues, while BTC is breaking milestones when all time highest levels are in question. During the previous week, BTC reached the level of $92.905 at one moment, which is for the moment treated as its new ATH. Still, during the week BTC was traded modestly below this level, struggling to hold the 90K, current resistance line.
The RSI continues to move within the overbought territory. The market is generally oriented toward the upside, in which sense, RSI might continue its move in the overbought side, until the market finally exhausts itself. A short reversal will inevitably come, however, the hype on the market and a strong demand will postpone this moment. During such situations on the market, it could not be predicted the exact timing of a reversal. It would depend solely on a demand for BTC. Moving average of 50 days continues to diverge from MA200, in which sense, any sort of cross is not expected in the near future.
Technical analysis provides solid indications of potential future price moves when the market is functioning within the relatively normal supply and demand environment for one type of asset. However, in situations where there is a general hype for one type of asset, the technical analysis should be taken with precaution. Exactly such a situation is currently with BTC. So, what technical analysis is currently saying is that the short reversal will eventually come, but only at the moment when the demand side is exhausted. Another point is that the 90K is established as a new important S/L line, considering that the majority of price oscillations occurred around this level. How much higher BTC can go in the coming period, nobody knows, but what we know is that the market is currently set toward higher grounds. On the opposite side, we can also expect that the price will continue to test the 90K level in case of a reversal, while a drop to lower grounds would depend solely on a demand for BTC.
The RSI continues to move within the overbought territory. The market is generally oriented toward the upside, in which sense, RSI might continue its move in the overbought side, until the market finally exhausts itself. A short reversal will inevitably come, however, the hype on the market and a strong demand will postpone this moment. During such situations on the market, it could not be predicted the exact timing of a reversal. It would depend solely on a demand for BTC. Moving average of 50 days continues to diverge from MA200, in which sense, any sort of cross is not expected in the near future.
Technical analysis provides solid indications of potential future price moves when the market is functioning within the relatively normal supply and demand environment for one type of asset. However, in situations where there is a general hype for one type of asset, the technical analysis should be taken with precaution. Exactly such a situation is currently with BTC. So, what technical analysis is currently saying is that the short reversal will eventually come, but only at the moment when the demand side is exhausted. Another point is that the 90K is established as a new important S/L line, considering that the majority of price oscillations occurred around this level. How much higher BTC can go in the coming period, nobody knows, but what we know is that the market is currently set toward higher grounds. On the opposite side, we can also expect that the price will continue to test the 90K level in case of a reversal, while a drop to lower grounds would depend solely on a demand for BTC.
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