Bitcoin is currently in overbought territory, indicating that the market may be overheating.
If #bitcoin bounces off the £90000 peak, there could be a significant sell-off, especially if traders and investors try to take profits. If prices fall below critical support levels such as the all-important 78,000 or 7,70000, it could worsen the situation and cause the entire #cryptocurrency market to fall.
This would be particularly undesirable for #altcoins , as many of them rely on Bitcoin's bullish momentum to sustain their own growth. Widespread market volatility can be attributed to Bitcoin's correction, which sets off a #chain reaction. Even if Bitcoin continues to dominate the market, the RSI divergence should not be ignored.
To counter possible downward pressure, Bitcoin needs to consolidate and establish a stronger support level if it wants to continue its rally on a sustainable basis. Otherwise, the market may face a pullback to its original position before further bullish activity begins. Investors should be careful and keep an eye on key indicators.
Arman Shirinyan is a trader, crypto-enthusiast and SMM expert with over 4 years of experience.
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