Bitcoin's RSI shows that the downtrend is coming after the 100% up move.

Bitcoin has had an impressive rally since falling by 50% in March, rising from a low of $ 3,700 to a high of $ 7,470. This move has convinced many traders that the market is on a new uptrend.

However, a prominent trader is giving a cautious signal because Bitcoin's relatively long-term strength index (RSI) shows that the market still has another large-scale correction.

Bitcoin is ready to plunge because of the macro RSI structure still falling

According to the famous trader Eric Thies, the recent uptrend in the Bitcoin market has been unable to push BTC's RSI value into the rising territory, a measure of the trend strength.

Per Thies recently shared 4 charts about Bitcoin's long-term RSI trend.

"Analyze the interesting index of Bitcoin RSI
Summary - RSI macro Looks like discount, signals the impending downward movement after the last increase in the coming week.
Expected to be in tune with the stock market's potential dump

Although a bit complicated, what Thies mentioned is based on his chart. The recent uptrend of Bitcoin to $ 7,470 failed to reach the actual breakout point on the RSI, failing to break through some resistance levels.

Is not just is a medium term bear

Thies is not the only one who predicts Bitcoin will decline after a 100% increase.

In news In April of Trader Crypto Digest Magazine, BitMEX CEO Arthur Hayes wrote that Bitcoin could retest $ 3,000 if the S&P 500 drops back and is likely to hit the $ 2,000 mark. This can be considered the global bear market, all assets are correlated with each other:

“Prices can be retested 3,000 dollars no? Sure. When the SPX fall back and kiểm TRA 2,000 dollars, all types of properties also reduced. If prices plummet like in Q1, we have nearly 100 years asymmetry to liberate old plans ”.

Chris Burniske of Placeholder Capital agrees, adding that if we see another person selling everything in the global market, then "Bitcoin will be no exception", then "there are some lows of 5,000. dollars, $ 4,000 and $ 3,000 that BTC can trade there. ”

Unfortunately for Bitcoin bulls, there are signs that the stock is about to fall after a strong recovery.

CIO Scott Minerd of Guggenheim financial services and fund management company wrote in a company note that was announced on Sunday last week that the Corona crisis will continue to hinder economic growth to an unstoppable level, causing the stock market to plummet by another 40%:

"When the market rate rising unemployment, economic growth and corporate income reduction, It will surely cause panic. ”.

As always, economic incentives promote exploitation

Unsurprisingly, Bitcoin's serious price decline last month resulted in a lagging mining industry. Old, less efficient rigs became unprofitable to operate. Now, prices are moving up again and the miner is once again powering up these rigs.

Currently there is considerable motivation to put the old mining rig into operation. Bitcoin price has increased by about 40% since the middle of March. However, the hashrate has only increased by 12.5%. Therefore, it is not surprising that miners are taking advantage of the opportunity to make more profits.

The increased hash rate has not been noticed by analysts even though it reflects a general interest in investing and adopting Bitcoin. PlanB analyst tweeted:

Halving Bitcoin: 11th/5

Miner is pumping hash rate

The next difficulty adjustment will increase

Also, in the past few days, Bitcoin Cash and Bitcoin SV have both performed halving. Not surprisingly, the hash rate of both platforms plummeted. Because Bitcoin can be mined by the same ASIC rigs, miners who have previously exploited BCH and BSV are currently switching networks. In fact, miners have long swapped back and forth between cryptocurrencies using the SHA-256 algorithm to find the best profitable platform.

It is possible many of these miners will return to altcoin mining after halving Bitcoin.

The rate of interest in Bitcoin halving is increasing

It is reasonable to assume that the hash rate will continue to accelerate as the halving approaches, as miners want to mine as much Bitcoin as possible before the block reward drops. There is no doubt that many of the inactive rigs will be rebuilt, even if they are currently not profitable, due to their belief in market resilience. Bitcoin strong is gone.

In fact, the excitement around halving continues to increase as analysts give a steady stream of opinion on how it affects market prices. "Bitcoin Halving" searches on Google are steadily increasing and are expected to be much higher in the next few weeks. The overall activity of the Bitcoin network also continues to increase, certainly investors are planning to buy now when the price is relatively low.

Mining activity shows that the Bitcoin network is still strong and is working as designed. It will certainly fluctuate in the next few weeks, but almost completely up in the long term.

You can see the price of BTC here.

Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

Thuy Trang

According to AZCoin News

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