Bitcoin (BTC) Remains Bullish, Analysts Say

Bitcoin (BTC) Remains Bullish, Analysts Say

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According to analysts, bitcoin remains volatile in the short term between $56K and $65K.

The technical analysis identifies the $65K resistance level, which limits the growth of the first cryptocurrency. The next resistance level is $69K. If BTC manages to overcome it, then the rally could last to $85K. In case of a drop in BTC, the support levels of $56K and $53K are still in line with a bullish trend, according to technical analysts.

An important parameter, the relative strength index (RSI), indicates that bitcoin is a bit oversold. RSI determines the strength of a trend and is calculated based on the price movement over a certain period, most often over two weeks. It can take a value from 0 to 100.

RSI above 70 means that the asset is overbought and the price is about to decline. RSI below 30 is a signal that the asset is oversold, that is, the price has fallen below market expectations. This usually happens when investors take profits. This situation can stimulate buyers. Ki Young Ju, CEO of the data provider CryptoQuant, notes:

– There’s no cascade of short liquidations for now. I think the market is likely to go sideways in a broad range to cool off the futures market for the next few days.

The cooling of the market is also indicated by a decrease in the use of leverage by traders, that is, borrowed funds. This generally reduces volatility. Marc LoPresti, Managing Director of the investment firm Strategic Funds, points:

– That’s a good thing not only for institutional [investors] but for retail holders as well. I think that pattern will continue as we see less leverage usage… we’re going to see continued upside.

Bitcoin is now being discussed on the Internet for half as much as it was after the dramatic crash in June when bitcoin dropped more than twice from a local high above $64K. About 30% of discussions in the cryptocurrency space of the Internet were then associated with the discussion of bitcoin, now – only 15%, says the analytical company Santiment. This means that bitcoin is less important for the cryptocurrency market now than six months ago, and this indirectly confirms the optimistic sentiments of the market players.