Due to recent price action, Bitcoin is now the most overbought cryptocurrency since just before its crash from the previous near-insane run-up leading to 20K last November. Bitcoin price reached the $5000 threshold setting a new record this week.
GTI, Global Strength Indicator, a cryptocurrency analysis tool, measured and recorded the coin’s price charts, showing that the currency is the most overbought since December 2017 when it reached to $19,891 before it crashed.
What are the Experts’ Views on Bitcoin’s Price?
Bitcoin’s historic landmark has set a new record; the last time the cryptocurrency was this sought out was in December 2017. Mike McGlone, technical analyst for Bloomberg, cited market compressions and low technical volatility as the cause for the massive outgrowth and estimated that with such an enormous reach there would be an exponential increase in sellers.
Dawid Tawil, president of ProChain Capital, spoke to Bloomberg regarding the surge and expressed his views stating his disapproval on Bitcoin’s 20% rise. According to him, the massive increase in Bitcoin price would undoubtedly be a roadblock for investors. Bitcoin’s dramatic rise goes against steady investment traditions. It can all fall in an instant, in Tawil’s opinion.
Bitcoin witnessed a huge price increase on the April 5. Market experts have been struggling to explain this sudden price surge, as it has come as a shock to many, more so since its downfall in 2018.
Cryptosphere on a Parabolic Case?
Cryptocurrency trader and investor, Peter Brandt, has stated his opinions, citing a “parabolic phase” for Bitcoin’s sudden price surge. If his prediction turns out to be true, Bitcoin could easily pass away its record high surge of $19891 in 2017. Brandt also added that the current market surge could be a false rise which would end up with a disappointing drop in prices to almost $3100.
Market researchers and analysts predict that due to current rates the cryptocurrency could go up to a record high of $6500 or more. If history were to repeat itself, Bitcoin tabulated a drop from $20,000 in December of 2017 to $6000 in February 2018.
On the other hand, Tom Lee, Fundstrat strategist, while talking to Bloomberg emphasized that Bitcoin is effectively back in a bullish trend and whales are hoarding cryptocurrencies like never before.
Tone Vays, a Wall Street analyst, stated that a downward price drop would be more practical as per the current market standards.
Ever since the price surge, Bitcoin price has been the talk of the crypto town. Analytics have been rife with reports of the leading cryptocurrency bottoming out. Meanwhile, Bitcoin bears have retorted back stating that the cryptocurrency’s fundamentals haven’t been maneuvered for increased sales in the market.
What’s Next for Bitcoin Price?
Bitcoin’s price could now be facing a pullback due to its recent monumental surge in the market. As per data analyzed by Bitstamp on Tuesday, BTC crossed the $4236 barrier and measured a record high of almost $5200, its first in 5.5 months.
The cryptocurrency’s 30 percent increase in the past two days has set Bitcoin’s relative strength index, RSI, over the 70 point threshold. The last time the RSI was this high was in December 2017. The RSI stands at its highest at 89.11.
The relative strength reading over the 70 point threshold indicates an incredible price surge which could lead to destabilization in current market rates and prices. To counterbalance the reaction, what’s needed is a price setback. Bitcoin faced a drop to $4800 in 2 hours of hitting its record $5100. The cryptocurrency as of now is barely holding on to prices over $5000. Critics assume that due to this over exhaustion, rates could be reduced down to $4600 in the coming days. Only time will tell if the new bull market is here.