Bitcoin (BTC) Is At Its Most Overbought Level Since December 2017
Today, the crypto market looks pretty mixed with some coins trading in the red and others in the green.
Bitcoin is currently trading in the red, and the most important coin in the market is priced at $10,226.92 at the moment of writing this article.
Crypto enthusiasts are happy that BTC can hold its price above $10k after dropping below this important psychological level a couple of days ago.
BTC is at its most overbought level since the end of 2017
Coindesk writes that “The money flow index (MFI), a momentum indicator that incorporates both price and trading volumes, has risen to 86.00 on the three-day chart.”
The online publication continues and explains that this is the highest level since late 2017 when prices hit a life-time high of $20,000. “A reading above 80 indicates overbought conditions,” they note.
It’s been also revealed that the overbought conditions don’t necessarily imply an imminent bearish reversal but they could represent an over-exuberant BTC buying since the coin rallied by more than $3,500 over the past six weeks.
The online publication continues and writes that “Bitcoin created a bullish engulfing candle on Tuesday, signaling a continuation of the uptrend.”
It’s been also revealed that the bullish bias would further strengthen, but this would happen only “if prices find acceptance above $10,383 (engulfing candle’s high), bringing additional gains toward the next big resistance at $10,949 (September high).”
A factor could endanger the $100k BTC prediction
Just the other day, when BTC was racing towards $10,400, we reported that there’s something that could pose a danger to BTC hitting $100k by the end of 2021.
As you know, this is a really popular optimistic prediction in the crypto space.
*** Update: my 2 sats on #bitcoin price:
– 2020: btc stays above $8200 (so we are NOT dropping to $6k or $4k levels that others are predicting now)
– May 2020 halving: will be above $10k
– 2021: bull run starts after the halving and tops $100k before Dec 2021#NotFinancialAdvice https://t.co/Zkkma4ZBSd
— PlanB (@100trillionUSD) February 10, 2020
PlanB crypto analyst says that Bitcoin is poised to start a significant long-term bull run after the halving process, which is scheduled in May.
He also highlighted the fact that the model indicates BTC will not drop below $6,000. If it does, all bets are off.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.