Bitcoin Market analysis Market Price prediction

TradingView Analyst: Crypto is Overbought, BTC Could Drop Back to $3,800 Soon

The latest surge in crypto prices has set off not only excitement from crypto enthusiasts but also a host of predictions from various commentators, and analysts. Market analysis positions and opinions have been coming thick and fast from various sources.

One case was Bloomberg, where the publication reported that the GTI Global strength indicator- a measure of market strength that is similar to the widely used Relative strength index- indicated that Bitcoin was the most overbought at the moment since late 2017 and early 2018. Another trader was of the opinion that were Bitcoin to follow its long-term trend then price can be expected to drop to $3,000 or even lower in the coming weeks.

While buying pressure on crypto-currency has eased since the end of last week, some analysts still believe that the prices went up too sharply and a correction is on the cards. One such analyst is TradingView’s TradeShot, who recently claimed that Bitcoin’s daily Relative Strength index (RSI) output currently reads an 83. Every time BTC’s one day RSI sat above 83, a 30 percent drop came just days later.

For instance, in the summer of 2017, BTC fell from $3,000 to $1,700 after its RSI peaked at 84 partially due to some news that were coming out of china. While the markets were at the top smack in the middle of 2017, going to the last quarter of the year, BTC breached $20,000 while its RSI hit 90, what was seen in the coming months after was 47 percent draw down.

If we go with the proverbial saying that “history repeats itself”, then a drop back to $3,800 is quite possible, before the bulls can activate again. Some analysts disagree with this, claiming that a call for a 30 percent drop was irrational. One such analyst goes by the title of ‘Crypto Thies’ who predicts that the price of Bitcoin could go on to reach $8,400. He did though concede that crypto prices could possibly drop back to $4,700 in the near future.

Trading View charts being published are all calling for $BTC shorts and drops of 30% inbound.

So naturally, I added more #Bitcoin here. Technicals agree.
Chart / explanation coming as soon as my Mac updates— Crypto Thies (@KingThies) April 7, 2019

On the other hand, TradingView’s Tradeshot, is positive that the current Bitcoin market is overbought. Another analyst who goes by the name ‘Crypto Titan’ recently explained that Bitcoin has historically seen oversold (sub-30) readings on its one-week RSI prior to a rally into halving events. And with the on-week RSI recently hitting oversold in the December move, Tytan believes that BTC could breach it’s all time high and referred to this pattern as an “algorithm that works”.

Before every $BTC Halving has begun there have been oversold RSI indicators on the weekly.

Every year before the Bitcoin halving the price has recovered, and sometime after the halving the price shoots past the previous ATH.

This isn’t coincidence. It’s an algorithm that works.— CRYPTO TYTAN (@CRYPTOTYTAN) April 7, 2019

Crypto Titan’s sentiments provide yet another bold prediction and joins the likes of Fundstrat’s Tom Lee, as well as analyst Brian Kelly in their bullish BTC market outlook.

Image Courtesy of Pexels

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