This is a daily analysis of the Coendesk analyst and rented market technician Omkar Godbole.
A key technical indicator is the warning of an early end of Bitcoin Broid market, even when merchants continue to position themselves for a continuous demonstration until the end of the year.
The indicator under consideration is the relative force index (RSI)An impulse oscillator that varies from 0 to 100. It helps merchants to evaluate the speed and magnitude of recent price movements, typically calculated for a period of 14 days, 14 weeks or 14 months.
The 14 -month RSI of BTC now shows a bearish divergence, a pattern that occurs when the indicator begins to decrease while prices continue to increase. The appearance of this divergence in the monthly table indicates that the BTC upward market may be weakening and potentially could go to a bearish trend.
The monthly table shows that although BTC reached a new maximum in the period from July to August, surpassing the December peak, the RSI moved in the opposite direction, forming a maximum lower.
The gains of bearish divergence added importance, since it coincides with BTC finding resistance in a key tendency line extracted from the peaks of the anterior upward market of December 2017 and November 2021.
To cut in persecution, bulls must be maintained alert for possible reversals of bearish trends. That said, the latest market flows suggest that merchants anticipate continuous price profits.
“The blocks suggest that merchants are preparing for higher profits, with a notable activity in December of BTC Call Esprads ($ 125K/$ 160K). The Ethereum approach was at the narrowest upper part, with $ 4,800 active attacks for September, and front-end pressure lifting, “said Jake Ostrovskis, OTC merchant in Wintermute, in an email on Thursday.
Block flows are great transactions negotiated privately at the counter and outside the public order book. These transactions generally involve institutions and individuals of high value of the network.
The December call differential mentioned by Ostrovskis essentially bets on prices that recover at $ 160K and more by the end of the year. Consensus is for a continuous demonstration at the end of the year and beyond, with prices up to $ 190,000. At the time of writing, BTC changed hands about $ 110,500, which represents a loss of 4.6% for the month, according to Coendesk data.
Read more: Bitcoin ‘Strang Strangle’ preferred since the market indicates calm in the short term: 10x research
