This is a daily analysis of Coindesk analyst and the approved market technician Omkar Godbole.
A key technical indicator is warning an early end of bitcoin The bullish market, even if traders continue to position themselves for a continuous rally in the end of the year.
The indicator considered is the relative resistance index (RSI)A momentum oscillator which varies from 0 to 100. It helps traders to assess the speed and extent of recent price movements, generally calculated over a period of 14 days, 14 weeks or 14 months.
The 14 -month BTC RSI now flashes a downward divergence, a model that occurs when the indicator begins to decrease while prices continue to increase. The occurrence of this divergence on the monthly graph indicates that the bruising market of the BTC can be weakened and could potentially move on to a downward trend.
The monthly graph shows that if BTC has reached a new summit in the period of July-August, exceeding the December summit, the RSI moved in the opposite direction, forming a lower summit.
The down divergence gains additional importance because it coincides with BTC resistance to a key trend drawn from the previous peaks of the Haussier market in December 2017 and November 2021.
To cut the pursuit, the bulls must remain vigilant for potential downward trend reversals. That said, the latest market flows suggest that traders provide for continuous price gains.
“The blocks suggest that the traders are preparing for other gains, with a notable activity in December of the BTC call spreats ($ 125,000 / $ 160,000). He focuses on the tighter top, with $ 4,800 of active strikes for September and lifting front pressure, “Jake Ostrovskis, OTC trader on Thursday.
Block flows are large transactions negotiated private at the counter and outside the public order book. These transactions generally involve raised institutions and individuals.
The December call distributed by Ostrovskis is betting mainly on prices which are released at $ 160,000 and more by the end of the year. The consensus is for a continuous rally at the end of the year and beyond, the prices reaching up to $ 190,000. During the editorial staff, BTC changed hands nearly $ 110,500, which represents a loss of 4.6% for the month, according to Coindesk data.
Read more: Bitcoin ‘Short Strangle’ preferred as a short -term calm market signals: 10x Research
