Bitcoin Could Form A Local Top After Strong Correction At $24K

Bitcoin could form a local top after the recent strong correction at the $24,000  level that was seen the past weekend. The leading cryptocurrency is now trading at $22,600 but fell to $21,800 around the past day as we can see more in today’s bitcoin news.

BTC is down by 5% in the past 24hours and the number one cryptocurrency is outperforming most of the cryptocurrencies which seem to be dropping as a result of the strong dominance move. The dominance move could have been triggered by the rumors of the US SEC that will pursue legal action against Ripple about its XRP cryptocurrency. Analysts believe that BTC could form a local top after peaking this past weekend at $24,300.

The charts show that the medium-term basis, Bitcoin could form a top due to the strong surge in the weekly relative strength index and the stochastic RSI. Both of the indicators are not in an overbought territory suggesting that a strong pullback for the market is due. Of course, as the traders caveat, the indicators could likely stay overbought for extended periods of time but showed that being cautious is fine in the long-term and the current environment:

“Weekly RSI and Stoch RSI significantly overbought. It has been a trending market and oscillators can remain overbought – but I’m just being cautious here…. Local top?”

While BTC’s price action is weak as well, the on-chain fundamentals are strong. Rafael Schultze Kraft who is the CTO of Glassnode, noted that with the number of BTC held on exchanges dropping, he thinks that supply-side crisis liquidity is happening:

 “#Bitcoin is in a supply and liquidity crisis. This is extremely bullish! And highly underrated. I believe we will see this significantly reflected in Bitcoin’s price in the upcoming months. Let’s take a look at the data.”

Analysts believe that further accumulation by the long-term investors will likely force Bitcoin higher in the upcoming months.