Bitcoin’s value is again moving away from the norm. The report says that according to an analysis One crypto analyst has said that the coin is now in circulation “overbought” In the run-up to halving, the Relative Strength Index was first used. The RSI, a technical indicator that analysts often use to assess the momentum of price movements for various instruments.
Bitcoin Overheating? RSI stands above 70
Analysts have noted that Bitcoin RSI, on the monthly graph is now above 70. This indicates an overbought and hot condition. It’s a major development, as this is the first time ever in Bitcoin history that it has occurred before a half-discount.
Mid-April is the date set for the Bitcoin network to reduce miner rewards by half. This is an event that occurs every 200 000 blocks. cut rewards The current distribution of 6,125 BTC will increase by half. They are vital in verifying transactions and maintaining security on the network.
Bitcoins prices are not as high as they appear. “overheating” Just before the halving, there is a net positive for this coin. The price is not only breaking away from previous trends, but it also shows a strong upward momentum.
The analyst also notes, that Bitcoin is now trading above a crucial dynamic level in the monthly chart.
This confluence could be the reason why traders feel optimistic. Analysts agree that coin prices will rise in the coming weeks, surpassing the all-time record high around $73,800.
BTC Below $73,000 and Consolidating
Bitcoin is increasing in price, as can be seen on the daily graph. Following sharp declines over the past trading session, the welcome reversal on the weekend has lifted the coin to the $70,000 mark and an all-time record high.
According to the daily candlestick chart, however, it is likely that a breakout above $73,800 will lead to more demand. Price movement is sideways in the broad range so far despite strong signals from other indicators.
Although some investors expect prices to increase, caution is advised. Bitcoin will enter new territory when it closes above $74,000. Analysts also use technical indicators for projections. The tools are based on historical data and lagged parameters. These tools may be less accurate in certain cases and misleading.
Chart by TradingView with DALLE as the featured image
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