Following the first failed attempt at $58,000, the most valued coin found support at $53,800. Bitcoin enjoyed a gradual surge to $58k as the 1 hour chart shows a progress in price with every passing candle. The price resistance broke at 02:00 (UTC) this morning and has been met with fierce selloffs.
We saw a more than 10% drop in buying pressure according to the Relative Strength Index (RSI). Traders are still taking profit as of the time of writing as we are seeing an unrelenting price dip with BTC trading as low as $57,450.
The move is one that has not gone unnoticed by the crypto community. While others are glad to have Bitcoin flip its 30-day high, some have voiced their concerns about the most valued coin getting stuck between $57k and $58k.
The Uptrend is Overextended
it is important to note that a previous bitcoin analysis on Coinfomania pointed to two warning signs that the current upswing is overextended. it stated that The Moving Average Convergence Divergence (MACD) is one of the many indicators flashing warnings. We may see a bearish interception within the next seven days. A crossing may mean a break from the uptrend as prices will plummet.
Another indicator that has been flashing warning is the Stochastic Oscillator. This oscillator has been above 80 since October 1. Any asset trading above the set mark is due for correction and is soon to face price retracements. The entire crypto market seems to be in a pump frenzy.
Ether Fails To Flip $3,700
Traders were eagerly anticipating ETH flipping of the $3,700 resistance but it seems the buyers are unable to push prices to that extent. Ether failed for the second time to break the resistance, leading many to worry. At the current rate of change, ether may surge above $3,700 if bitcoin flips $59k.
A total of $216 million was liquidated during the last 24 hours as BTC raced past $58k. The bears lost more than $160 million as they make up more than 70% of the total REKT funds.