Extreme overbought readings can more often than not be bullish, based on the ETF’s trading history
After the Grayscale Bitcoin Trust ETF’s historic spike to new highs, it would be natural for investors to get spooked by a bearish daily chart pattern on the day after its most extreme “overbought” reading in more than six years.
Chart watchers try to put a rally like that in historical perspective by tracking the relative strength index , a momentum indicator that measures the relative magnitude of recent gains and losses. Monday’s RSI close was the highest seen for the ETF since it peaked at 88.01 on Dec. 18, 2017, when its price closed at a then-record high of $38.05. The fund plummeted 89.9% over the next year, to close Dec. 14, 2018 at $3.84.
That first time was a 91.06 close on Nov. 14, 2015. While there were no closes above 85 in 2016, there were nine others in 2017 before that final reading on Dec. 18. On Monday, Grayscale Bitcoin Trust opened at $58.45, and traded in an intraday range of $$58.39 to $60.70, before closing at a record high of $60.38.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bitcoin (BTC) Getting Overheated as Key Bearish Signal AppearsBitcoin facing potential overheating as bearish divergence signal emerges despite its recent rally to over $56,000
Read more »
Japanese Yen Forecast: Bearish Signs Build; Setups on USD/JPY, EUR/JPY, GBP/JPYThis article focuses on the technical outlook for USD/JPY, EUR/JPY and GBP/JPY. The piece also assesses key price levels that should be on every currency trader’s radar, discussing their potential roles as support or resistance in the coming days.
Read more »
GBP/USD Weekly Forecast: Pound Sterling set to maintain its bearish potentialThe Pound Sterling (GBP) extended its losing streak against the US Dollar (USD) into a fourth straight week, keeping GBP/USD undermined near two-month troughs.
Read more »
Ether Hits $3K for First Time in Nearly 2 Years Amid Rising ETH ETF ExcitementNikhilesh De is CoinDesk's managing editor for global policy and regulation. He owns marginal amounts of bitcoin and ether.
Read more »
Ether Surges Above $2.8K on ETF Steam; Neon EVM Partners With deBridgeThe price of ether (ETH) rose through the $2,800 mark for the first time since May 2022 as traders bet on the possibility of a spot ETH exchange-traded fund (ETF) approval in the U.S. Plus, Yuriy Yurchenko, Chief Product Officer at Neon EVM, joins deBridge CEO Alex Smirnov to discuss their partnership in the cross-chain space.
Read more »
This is How Bitcoin ETF Inflows Are Affecting BTC’s Price MovementCrypto Blog
Read more »