Bitcoin Consolidation Inbound
Volatility is back in full swing in these Bitcoin (BTC) markets. Ever since falling under $10,000 yesterday, BTC has been in a bit of a tumult, finding itself everywhere from $9,750 to $10,800. While some are expecting a large breakout to the upside, some have suggested that BTC will continue to consolidate in this range for maybe a few more weeks. Here’s why.
As Twitter statistician PlanB points out, Bitcoin’s 12-month Relative Strength Index (RSI), an indicator meant to determine if an asset is “overbought”, “oversold”, or otherwise, has struggled before surmounting 70.
In 2012, 2013, and 2016, this technical reading has always fallen and consolidated around 50 to 60 before breaking past 70. This time is no different. If history is of any indication, BTC may continue to consolidate for a few months, which would most likely translate to Bitcoin establishing a range around $10,000.
Normal struggle before RSI 70+ #bitcoin