Bitcoin is showing a unique trend that signals the potential for a shift in direction.
Bitcoin (BTC) – the world’s largest cryptocurrency – is showing signs of decline after its recent price surge, as experts warn of a potential sell-off.
This development occurred shortly after the U.S. Federal Reserve (Fed) cut interest rates, providing Bitcoin with a short-term price boost.
Expert Ali Martinez analyzed on X that Bitcoin is forming a bearish divergence on the RSI in the 4-hour chart. This divergence happens when the price rises but the RSI decreases, indicating a possible reversal.
#Bitcoin appears to form a bearish divergence against the RSI on the 4-hour chart! pic.twitter.com/X6kNLgHRbe
— Ali (@ali_charts) September 23, 2024
At present, Bitcoin is maintaining its upward momentum, trading at $63,319, up 0.8% in the last 24 hours and 8.2% over the past week.
Trading volume has surged by 93%, reaching $29.4 billion, indicating growing investor interest. Bitcoin is now approaching the critical resistance level of $64,000.
Optimism surrounding Bitcoin comes from the participation of both retail and institutional investors. MicroStrategy, a renowned financial company, recently purchased an additional $458 million worth of Bitcoin.
Spot Bitcoin ETFs also saw significant inflows, with $192 million on September 20.
Research shows that cryptocurrencies and U.S. stocks are moving more in sync than ever before, due to macroeconomic factors.
The correlation coefficient between the S&P 500 and the top 100 digital assets now stands at 0.67.
While it’s unclear whether Bitcoin’s decline has ended, the market has remained stable in recent days. Investors will closely monitor inflation data and upcoming announcements from the Fed.
