Further to our previous article, BTCUSD has made impressive gains. Two strong candles last week Tuesday and Wednesday propelled the cryptocurrency upwards into the resistance belt around the $30,000 level (red shaded horizontal). Last Friday saw another spike higher as bulls tried to take prices up. However, this resulted in an overbought condition, with the RSI moving above 80 (blue rectangle).
The overbought condition seems to have placed an interim ceiling on the cryptocurrency, making the resistance zone formidable in the near term. As such, BTCUSD has moved sideways over the last two sessions and the RSI has normalised.
Bitcoin showed a muted reaction to the Wagner Group's advance on Moscow, which was aborted 200km from the Russian capital city. Currently, it is holding above the key $30,000 level.
Cryptocurrencies are being influenced by the regulatory outlook in the USA. The Securities and Exchange Commission is currently reviewing applications for the establishment of exchange-traded funds that would hold Bitcoin.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.