Crypto Market Bullish Trend: Will it be Sustainability?
The cryptocurrency market is showing a bullish trend, but is it sustainable? Recent data shows that the total cryptocurrency market capitalization has been on an upward trend over the past week, with the Relative Strength Index (RSI) consistently above 50, indicating a strong bullish market. However, the RSI reached an overbought level of 77.41 on Thursday, January 12th, which has some traders questioning the sustainability of the trend. It is worth noting that similar RSI levels have been reached in the past without a significant pullback, such as in January 2018, June 2019, November 2019, April 2021, and September 2021, when the RSI reached 84, 88, 87, 89, and 86 respectively, but no immediate correction occurred. However, there have also been instances where the RSI has reached overbought levels and a pullback followed, such as in December 2017, January 2018, June 2019, November 2019, and April 2021, when the market corrected shortly after reaching an RSI of 96, 84, 88, 87, and 89 respectively.
An indicator that measures trend has also been trending upward, with values above 20 indicating a strong trend. Another indicator that measures the strength of a trend has also been bullish with values of 100% for the up and low values for the down. Another indicator that measures overbought and oversold has also been above 100, indicating that the market is overbought. An indicator that measures volume has been increasing throughout the week, reaching a peak of 83.52B on Thursday, January 12th.
It is important to keep in mind that while the technical indicators suggest that the market is currently overbought, it is also important to keep an eye on macroeconomic factors that may impact the market. The release of the Consumer Price Index (CPI) and Initial Jobless Claims data had little impact on the crypto market, with the Consumer Price Index (CPI) for December 2022 showing an increase of 6.5% YoY, and a decrease of 0.1% MoM. The Initial jobless claims was 205,000 which was lower than the forecast of 215,000 and previous level of 206,000.
The crypto industry is also facing several challenges, including regulatory issues such as SEC charges on companies like Genesis Global Capital LLC and Gemini Trust Company LLC and crypto lender Nexo being investigated in Bulgaria for potential crimes such as money laundering, while financial difficulties for companies like FTX International, Digital Currency Group is trying to raise money by selling assets and then Vader Protocol, a DeFi platform, is shutting down and returning funds to holders, while a court in San Diego ordered that $17 million be returned to 800 victims of a Ponzi scheme and Blockchain.com is cutting jobs. But there have also been positive developments in the industry, such as the merger talks between Canadian crypto exchanges Coinsquare and WonderFi which could make the merged company the biggest crypto exchange in Canada. Additionally, the industry is also seeing new regulations being implemented in different countries to regulate the crypto market, this could have a positive impact on the market in the long run.
In conclusion, the cryptocurrency market is showing a bullish trend but it is important to keep in mind that similar RSI levels have been reached in the past without a significant pullback as well as instances of pullbacks in the past. It is important to stay informed about any potential regulatory changes or company-specific issues that may affect the market, as well as positive developments in the industry. As always, it is crucial to conduct thorough research and consult with a financial advisor before making any investment decisions.
An indicator that measures trend has also been trending upward, with values above 20 indicating a strong trend. Another indicator that measures the strength of a trend has also been bullish with values of 100% for the up and low values for the down. Another indicator that measures overbought and oversold has also been above 100, indicating that the market is overbought. An indicator that measures volume has been increasing throughout the week, reaching a peak of 83.52B on Thursday, January 12th.
It is important to keep in mind that while the technical indicators suggest that the market is currently overbought, it is also important to keep an eye on macroeconomic factors that may impact the market. The release of the Consumer Price Index (CPI) and Initial Jobless Claims data had little impact on the crypto market, with the Consumer Price Index (CPI) for December 2022 showing an increase of 6.5% YoY, and a decrease of 0.1% MoM. The Initial jobless claims was 205,000 which was lower than the forecast of 215,000 and previous level of 206,000.
The crypto industry is also facing several challenges, including regulatory issues such as SEC charges on companies like Genesis Global Capital LLC and Gemini Trust Company LLC and crypto lender Nexo being investigated in Bulgaria for potential crimes such as money laundering, while financial difficulties for companies like FTX International, Digital Currency Group is trying to raise money by selling assets and then Vader Protocol, a DeFi platform, is shutting down and returning funds to holders, while a court in San Diego ordered that $17 million be returned to 800 victims of a Ponzi scheme and Blockchain.com is cutting jobs. But there have also been positive developments in the industry, such as the merger talks between Canadian crypto exchanges Coinsquare and WonderFi which could make the merged company the biggest crypto exchange in Canada. Additionally, the industry is also seeing new regulations being implemented in different countries to regulate the crypto market, this could have a positive impact on the market in the long run.
In conclusion, the cryptocurrency market is showing a bullish trend but it is important to keep in mind that similar RSI levels have been reached in the past without a significant pullback as well as instances of pullbacks in the past. It is important to stay informed about any potential regulatory changes or company-specific issues that may affect the market, as well as positive developments in the industry. As always, it is crucial to conduct thorough research and consult with a financial advisor before making any investment decisions.
