The 14-day RSI shows a bearish divergence, which is an early herald of correction. Thus, the price of Bitcoin may soon fall to $ 5000. Nevertheless, the rebound from the 30-day moving average at $ 4,969 will confirm the short-term growth, says Omkar Godbul, analyst at CoinDesk Markets .
On April 1, the price of Bitcoin overcame the psychological threshold of $ 5,000 and continued to rise to $ 5,400. Then the 14-day RSI reached a value of 89.11 – the highest since the rally in December 2017. Against the background of overbought, the first cryptocurrency slipped to $ 4,912, and then again updated the five-month maximum at $ 5,627. However, on the daily chart, the RSI indicator has formed a bearish divergence, which speaks in favor of the correction.
CoinDesk Markets Information
A similar situation has already taken place in May last year. After the bear divergence at the RSI was recorded, Bitcoin lost 38% of its value within two months. Similar patterns were seen in December and September 2017.
CoinDesk Markets Information
Nevertheless, according to Godboul, the long-term picture is in favor of the bulls until the price has fallen below $ 4,236.
At the moment, Bitcoin is trading near the $ 5,500 mark.
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