According to Bloomberg News, Bitcoin stayed higher for the third consecutive day after the week’s flash crash, while chart watchers have been suggesting that the rally may further push one of the largest cryptocurrencies back to the $55,000 mark.
On Tuesday, it was seen that the coin surged to 3.6% recording a figure of $51,897, while there was an advancement of the smaller tokens as well. On Saturday, Bitcoin manifested a decline by as much as 21%. According to the Bloomberg Galaxy Crypto Index, the largest digital assets gained by as much as 5.4% at one point of time during the ongoing session, simultaneously, there was an addition of 100 coins pushing the figure by 5.8%.
According to Mike McGlone, who is one of the Bloomberg Intelligence analysts said, “Bottom line is the most leveraged and speculative marketplace in the world-cryptos-flushed out some of the excesses in thin weekend trading and is resuming the more enduring bullish trend”. The market has seen speculative traders “getting stopped out and is attracting the more enduring buy and hold types”.
Cryptocurrencies and Bitcoin were dived during the weekend amidst a larger risk-off sentiment that encompasses selloffs in several areas of the US stock market. It occurred as surging inflation has forced central banks to make the monetary policy stringent, thereby threatening to minimize the liquidity tailwind that caused a rise in the broad spectrum of the assets.
The 14-day RSI or relative strength index of Bitcoin of 36 shows implies that it is closer to being in the oversold territory technically, which is a measure for investors to utilize for the identification of the selling and buying opportunities. If the RSI is above 70, the assets are regarded as being overbought and if the RSI is below 30, assets are regarded as oversold.
