Bitcoin saw an extremely strong rally last day, despite the fact that the coin is facing a sharp fall in Christmas. According to CoinGecko, the coin has risen 8% in the last 24 hours alone, rising from $ 24,500 to $ 26,700.
At its peak a few hours ago, BTC was trading as high as $ 27,000 in some markets. Bitcoin outperforms altcoins as it continues to suck the air out of altcoins due to the strength of the rally and institutional focus on bitcoin.
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Bitcoin could be anywhere near $ 28,000
Given these rapid upside moves, analysts have begun speculating where this market will top.
A trader recently shared the graph below, postulating that the market could hit $ 28,000 in the short to medium term. The graph shows that Bitcoin’s Relative Strength Index (RSI) is currently at its 2017 high, indicating that the market is to some extent overbought. While this does not exactly mean that an immediate correction will take place, it could indicate that investors should be cautious if they expect further upward movement.
According to the analyst who shared the chart below, a point where this rally could top it off in the short to medium term is between $ 28,000 and $ 29,000. Here is the 1,618 Fibonacci extension of the rally from the 2017 Chinese “FUD” lows to the $ 20,000 highs.
Graph of the price development of BTC over the past few years with an analysis of Crypto Trader and Coder TraderXO (@Trader_XO on Twitter). Source: BTCUSD from TradingView.com Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Comes for Bitcoin
Despite the recent rally and the expectation of further gains, some are not putting much trust in the cryptocurrency.
Shark Tank star Kevin O’Leary recently described Bitcoin as not an institutional investment vehicle as the range of altcoins and BTC he bought in 2018 is now worth $ 50 instead of $ 100.
This is interesting as O’Leary once claimed that every investor should potentially have 1-2% of their portfolio in Bitcoin to hedge against currency fluctuations.
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Featured Image from Shutterstock Price Tags: xbtusd, btcusd, btcusdt charts from TradingView.com Fast Bitcoin Move Might Find Top Near $ 28,000: Analyst