Cryptocurrency Analyst Warns of Potential Bitcoin Pullback
Cryptocurrency analyst and trader Kevin Svenson believes that Bitcoin (BTC) may experience a significant correction before reaching its all-time high. In a recent video, Svenson explains that Bitcoin is currently in overbought territory on the weekly chart, as indicated by the Relative Strength Index (RSI). The RSI measures an asset’s price momentum on a scale of 0 to 100, with levels above 70 indicating overbought conditions.
Svenson emphasizes that if Bitcoin fails to hold above the 70 level on the RSI, it could result in a pullback and heavy liquidations. He suggests that there is likely to be strong resistance between the $57,000 and $60,000 price range.
Bitcoin is currently trading at $43,737.
Hot Take: Potential for a Bitcoin Correction
According to cryptocurrency analyst Kevin Svenson, Bitcoin could be on the verge of a significant pullback. Svenson highlights that Bitcoin is in overbought territory based on the RSI indicator, indicating a potential correction. He warns that if Bitcoin fails to maintain its current trend and drops below the 70 level on the RSI, it could lead to heavy liquidations and an overall market downturn. Svenson also points out that there is a strong resistance zone between $57,000 and $60,000. This analysis suggests caution for investors and traders as they monitor Bitcoin’s price movements in the coming days.
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