The approach of Bitcoin toward the $35,000 mark has stirred optimism among investors, with recent surges delivering substantial profits. While many are eager to jump in, some analysts suggest stepping back and waiting until mid-December. Bitcoin has witnessed a remarkable 35% price increase over the past six weeks, trading at $34,747 at the time of writing. This surge marks the highest weekly closing since April 2022, extending the trend for 78 weeks.
However, this upward momentum seems to align with a pattern observed multiple times since the beginning of 2023. The Relative Strength Index (RSI), measuring the speed and change of price movements, currently sits in the overbought region above 70. Historically, this phase is followed by a period of sideways movement or a downtrend lasting around 55 days. After this period, the RSI drops to 30.0 or lower, entering the oversold territory.
After testing the $33,901 support level, Bitcoin is attempting to sustain its upward momentum, bolstered by the rising interest in BTC exchange-traded funds (ETFs). While the next significant ETF-related news might take some time, Bitcoin will witness decisions from the U.S. Federal Reserve regarding interest rates and the release of non-farm payroll data within the coming week.
If both events unfold as expected, Bitcoin may experience minimal volatility, fluctuating around $34,700 and potentially reaching $35,000. Waiting until mid-December might offer a more stable entry point for investors, allowing them to make well-informed decisions amidst these crucial developments.
However, this upward momentum seems to align with a pattern observed multiple times since the beginning of 2023. The Relative Strength Index (RSI), measuring the speed and change of price movements, currently sits in the overbought region above 70. Historically, this phase is followed by a period of sideways movement or a downtrend lasting around 55 days. After this period, the RSI drops to 30.0 or lower, entering the oversold territory.
After testing the $33,901 support level, Bitcoin is attempting to sustain its upward momentum, bolstered by the rising interest in BTC exchange-traded funds (ETFs). While the next significant ETF-related news might take some time, Bitcoin will witness decisions from the U.S. Federal Reserve regarding interest rates and the release of non-farm payroll data within the coming week.
If both events unfold as expected, Bitcoin may experience minimal volatility, fluctuating around $34,700 and potentially reaching $35,000. Waiting until mid-December might offer a more stable entry point for investors, allowing them to make well-informed decisions amidst these crucial developments.
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