• 16 July, 2024
Market News

Bitcoin Price Pauses Near $23K Amid Overbought RSI; What’s Next?

After a subdued U.S PCE Inflation data the crypto market trades flat. Bitcoin loses 0.50% and ETH is down more than 1%.

Bitcoin price analysis remains neutral for the day. After the U.S. economic data, the broader crypto market recovery remains elusive.

Bitcoin, the pioneer and the largest cryptocurrency by market cap remains unchanged largely as it hovers near Wednesday’s level. As of writing, BTC/USD reads at $22,893, down 0.51% for the day. The 24-hour trading volume fell 30% to $23,013,105,309 as per Coinmarketcap.

Crypto’s resistance came under pressure on Friday. Equity markets had a mixed reaction following the release of the U.S. economic data. The Dow trades flat, while the S&P 500 and the Nasdaq 100 were down nearly 0.5% as investors digested the softer data and earning reports.

From a technical perspective, the Bitcoin price consolidates near the higher level and trades in a range-bound manner.  The bullish momentum picked up at the beginning of 2023 with an appreciation of almost 30% from the low of $16,360  but seems to paused this week.

Source: Trading View

The formation of multiple Doji candlesticks near $23k suggests a consolidation at the higher level.

However, the oversold momentum oscillators hold in the overbought market zone. The Relative Strength Index (14) reads at 75, and another indicator, the Moving Average Convergence Divergence (MACD) with receding bullish momentum hints at a probable price correction. Support is plying around $22K.

On the flip side, a close above the daily high would continue with the prevailing trend with an eye on $24K.

On the contrary, the signal from the Bitcoin options market prints a bullish sentiment. The latest tweet from QCP capital, a full-suite crypto trading firm indicates a sudden shift in the bullish sentiment.

One of the key observations is that Bitcoin (BTC) risk reversals hold onto positive territory for multiple tenors.

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