The long-awaited correction is here and for the first time in such a long time, bitcoin ends the week on a negative note with a decrease of more than 5% for the second time in a row. More evidence is pointing to the end of one of the longest surges in the king coin history. For most of December 2020 the leading cryptocurrency saw a bullish run. The surge spilled over to the new year and will possibly continue till the end of January.
It is somehow compelling to think that a repeat of what happened last week may take place as various indicators are pointing to it. One of these indicators is RSI. Last week Monday and Tuesday saw the RSI crashing as well as the price of Bitcoin. Wednesday was the beginning of a consolidation that saw BTC price on the rise again.
The highlighted condition is what seems to play out this week. Following very closely the same trend as last week, RSI is crashing and showing no sign of recovering at the time of writing. This may continue till tomorrow and may consolidation on Wednesday.
With the outlined prediction, it is also important to remember that market sentiments may change and alter the prediction. If this happens, bitcoin may consolidate sooner than expected or in a worst-case scenario may drop further. The latter of the sentence before has more chances of playing out as the bullish momentum seems to be dying.
$DOT Surges
Polkadot, on the other hand, has been rewarding its traders as it recorded a gain of more than 80% in the last seven days. Following the bitcoin surge for a while, DOT was also on a steady rise. Last week’s surge was a little different as the altcoin rose to a new all-time high.
From as little as $8.28, polkadot surged to $19.4 breaking its previous all-time high and seeing it climb to the market cap rank and now sits at the fourth position. At the time of writing, DOT is dipping and will dip more if the current bearish sentiment does not change.
