Bitcoin (BTC) May be Reaching Overbought Over Holiday Break

Crypto Trending

 

(NEW YORK)–Bitcoin (BTC) extended its run over the holiday weekend, but it may be starting to show signs of becoming over extended in the short-term.

Bitcoin broke above key $24,000 resistance, but may start finding some profit takers around the $25,000 level as indicators on both the daily and more importantly weekly chart show signs of becoming highly overbought in near-term.

The RSI on BTC weekly chart is now pushing up towards 90, which indicates highly over bought, and at risk for a sharp correction in coming days to weeks.

If it does BTC could try to retrace to find support at its old resistance at around $20,000.

Longer-term the trend for Bitcoin remains bullish as more and more institutions get involved with the cryptocurrency, but for the immediate term traders should tread with caution as things begin to get to bubble levels above $25,000.

JP Morgan Warning on Bitcoin

JPMorgan analysts late last week issued alert to clients indicating that bitcoin was likely “overbought” after the recent rally. They clarified that the flows into the Grayscale Bitcoin Trust “are too big to allow any position unwinding by momentum traders to create sustained negative price dynamics.”

But they emphasized that “a major slowdown in those flows would boost the risk of a bitcoin correction akin to the one in the second half of 2019.


Join our Trader Madness crypto investor newsletter for updates
https://tradermadness.com/investors/


Disclaimer:
This is NOT a solicitation to Buy or Sell any security, but rather is for informational purposes only. Content contained herein includes facts, views, opinions and recommendations of individuals and organizations deemed of interest. Trader Madness (“Trader Madness”) does not guarantee the accuracy, completeness or timeliness of, or otherwise endorse these views, opinions or recommendations, or give investment advice. In Compliance with SEC Rule 17B Trader Madness was not compensated for this media alert. Trader Madness, or its affiliates, may hold a position in above securities from time to time, and thus should be considered a possible conflict of interest when reviewing this report and information. As of date of this alert, Trader Madness affiliates company held positions in securities mentioned above, and thus should be considered a possible conflict of interest when reviewing this report and information. These investments may involve a high degree of risk, thus investors are highly encouraged to consult with a financial adviser before any and all investments.

Safe Harbor Statements:
This website includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected.

High Risk
Cryptocurrencies involve a high degree of risk, and we highly encourage investors to consult with a financial adviser before making any and all investment decisions when investing in these type of securities