Bitcoin Price Crashes After Nearing $70K – Are Traders About to Lose Big?
Harvey Hunter is a Junior Content Creator at Cryptonews.com. With a background in Computer Science, IT, and Mathematics, he seamlessly transitioned from tech geek to crypto journalist.
Over the past 24 hours, the Bitcoin price has experienced a 2.05% dip after nearing the $70,000 mark. This decline raises concerns that yesterday’s bullish breakout from a seven-month descending channel may have been a false signal.
This price lapse follows a strong week for Bitcoin, retaining a 3.47% gain since last Thursday.
However, the dip has somewhat shaken the much-heeded “Uptober” sentiment, pushing the broader altcoin market into the red.
Despite this volatility, the broader sentiment around Bitcoin remains optimistic.
Trading volume has remained robust, hovering around $28 billion, and Bitcoin futures have continued to see significant activity, reflecting sustained interest and confidence from investors.
Upon closer inspection, it appears that Bitcoin was destined to correct following its breach into overbought territory.
On Sunday, the relative strength index (RSI) peaked at 70, a level considered indicative of overbought conditions. Therefore, Monday’s push lacked stability, leading to a sharp decline as the RSI returned to more steady footing at 61.
Although today’s return to 58, a more neutral territory, may suggest that the excess of the previous days has been completely exhausted, it is important to note that just over ten days ago, the RSI was below 45.
This rapid fluctuation underscores the volatility in Bitcoin’s price. In just 11 days, the price of Bitcoin has risen above $69,000, arguably excessively fast without solid fundamental backing.
At this moment, there is likely a race among speculators to be the first to enter in
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