Bitcoin (BTC) started the new week around $42,000. BTC/USD is almost exactly where it was in the second week of January 2021. So, will the status quo change? What can set prices this week?
Will these levels continue to be seen in Bitcoin price?
Bitcoin has spent the weekend worried as it approaches the $40,000 support, the latest in a series of sudden downside moves. Ironically, that was the level in focus on the same day in 2021. A breakout to the $30,000 zone seems likely among analysts.
“Theoretically, there is a chance for BTC to hit a one-week close above around $43,200 to enjoy a green week next week ,” analyst Rekt Capital says . If there is a weekly close below $43,200, he thinks the decline may continue. Trader and analyst Pentoshi predicted, “I think the market is making a lower high,” adding that he believes $40,700 will eventually drop.
summarized by former CEO Arthur Hayes bitmex as follows:
Let's forget what non-crypto investors believe; My view of the sentiment of crypto investors is that they naively believe that the entire complex's network and user growth fundamentals will allow crypto assets to continue their upward trajectory unabated. In my view, the detrimental effects of rising interest rates on future cash flows will likely prompt speculators and margin investors to dump or drastically reduce their crypto holdings.
RSI at two-year low
On-chain indicators are calling for bullishness, and the historical context serves to support these claims. This week, Bitcoin's relative strength index (RSI) continues to hit the headlines, reaching two-year lows . The RSI is a key metric used to determine whether an asset is "overbought" or "oversold" at a particular price point. Currently, the indicator appears to be “oversold”.
