“Markets need to digest some overbought levels before attempting $50,000-$55,000 resistance,” Zerocap’s Chapple said.
Bitcoin is flashing signs of buyer exhaustion near the $47,000 price tag as bull pressure begins to wane, according to on-chain data and CoinDesk sources.
The crypto is currently changing hands for around $45,000 after reaching a 24-hour top of $46,767, CoinDesk data shows. The temporary stay in price might be short-lived, however, as prices begin toying with major psychological resistance near $50,000, according to some.
“The derivatives markets are long, perpetual funding rates are positive for shorts, indicating short-term positive interest from retail,” Toby Chapple, head of trading at digital asset firm Zerocap, told CoinDesk via Telegram.
Bitcoin is up 50% over a three-week period, having broken a long-term moving average on the back of strong institutional and retail demand. Still, the crypto is showing signs of buyer exhaustion as seen by the relative strength index, an indicator used to gauge a given trend.
And while bitcoin’s rally on the back of Ethereum’s ‘London’ Hard Fork has helped drive prices, political tensions in the U.S. and China’s crackdown remain a “significant threat” to the crypto market, Jehan Chu, managing partner at Hong Kong-based crypto investment firm Kenetic Capital, told CoinDesk via WhatsApp on Thursday.
Other cryptos in the top 20 by market capitalization over a 24-hour period were mixed with tron (TRX, +2.86%) and XRP (+11.31%) posting the largest gains while internet computer and uniswap (UNI, -5.28%) lost out the most.
Leave a Reply
You must be logged in to post a comment.