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The recent upward momentum of Bitcoin has led to a dramatic shift in general sentiment towards the cryptography markets, as enthusiasm has been growing lukewarm, with more and more investors believing that the troughs of the BTC in 2018 are really at the base.
In spite of this, one of Bitcoin's fundamental indicators is currently a bearish signal that has always been followed by big declines, which could jeopardize BTC's recent price spike.
Bitcoin (BTC) climbs to more than $ 5,300 as a subgroup of fears related to a fastener system
At the time of writing, Bitcoin is trading up nearly 1% at its current price of $ 5,310, up slightly from its low of $ 5,260.
Earlier this week, BTC dropped more than US $ 5,600 due to reports that New York's attorney general's office said the controversial Stablecoin Tether and associated cryptocurrency exchange Bitfinex cheated investors and traders .
Bitcoin and the crypto market were instantly underpinned by this news, but BTC found reasonable support in the $ 5,200 area that prevented it from falling and allowed it to start climbing.
The recent downturn initially seemed to jeopardize the momentum created by Bitcoin when it entered the $ 5,000 region earlier this month, but investors were obviously not too shocked by the news, its impact being limited .
Moon Overlord, a popular cryptocurrency analyst on Twitter, talked about the lack of impact of the Bitfinex and Tether imbroglio on the markets in a recent tweet, in these terms:
"Despite all the turmoil and the $ crypto community reaction about the new Bitfinex / Tether, it's barely noticeable on the $ BTC chart."
For all the commotion and reactions of the $ crypto community on the news of Bitfinex / Tether, it is barely noticeable on the $ BTC graphic. pic.twitter.com/LdLzmjHKkQ
– Moon Overlord (@MoonOverlord) April 27, 2019
BTC RSI could signal that a return is imminent
Although the discrete market response to Tether information may indicate both a fundamental strength and increasing maturity, Bitcoin's RSI may be a bearish signal that has always been followed by large retirements.
HornHairs, another popular crypto analyst on Twitter, has spoken of this bearish signal in a recent tweet, explaining that over the past five years, the RSI divergences down on a two-day chart have almost always been followed by 39, a significant decline.
"$ BTC #Bitcoin 2D RSI Decline Division Study: Over the last 5 years, there have been only 5 reports of RSI divergence on the 2D chart. Today will mark 6. The average draw AFTER the confirmation of these previous divs before a significant rebound / reversal was -44.25%, "he explained in a recent tweet.
$ BTC #Bitcoin 2D RSI Bear Div study:
In the last 5 years, there have only been 5 divergence RSI bearish on the 2D chart
Today will mark the 6th
The average draw AFTER the confirmation of these div before a significant rebound / rollover was -44.25% pic.twitter.com/zXsddqrWyu
– HornHairs ? (@CryptoHornHairs) April 26, 2019
As the weekend's quiet trading session ends and a new trading week begins, the validity of this indicator as a bearish signal will likely become more apparent as traders find out whether Bitcoin has or not. enough buying pressure to keep climbing.
Selected image of Shutterstock.
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