Bitcoin (BTC) hovered around $38,000 on Jan. 30 as a “trappy” weekend remained a possibility for a strong weekly close.
“Rough seas” For Bitcoin
After hitting local highs of $38,740 on Bitstamp the day before, data showed BTC/USD reclaiming the $38,000 level.
Despite its excellent “out of hours” performance, few experts saw BTC as a sure-fire bullish bet in the absence of traditional market advice.
“We’ll see whether $37K holds up. If not, I expect us to test lows in order to establish daily bullish divergence. If we maintain our position, we may see a break above $38.5K. Weekends are monotonous and tedious.”
Despite the highs, BTC/USD appears to be slowly returning to form on daily timescales after hitting sub-$33,000 lows earlier this week.
The pair’s multiple closing above the 10-day moving average provided support for the trader, investor, and entrepreneur Bob Loukas (MA).
At the time of writing, though, hopes of a weekly closing above the $39,600 resistance level appeared to be fading.
“Breakout traders abound in the cryptocurrency industry. On a weekend when morale is already poor, what is the quickest method to bait them? Make a move, “Cantering Clark, a sceptical trader and analyst on Twitter, remarked.
The RSI provides bulls a reason for delight
While we’re on the subject of on-chain data, popular analyst Matthew Hyland disclosed another more bullish signal from BTC’s relative strength indicator (RSI).
RSI recently reached its most “oversold” levels since the March 2020 Coronavirus crash across various chart timeframes.
The statistic is used to determine if BTC is “overbought” or “oversold” at a given price, and thus how likely a trend will continue.
RSI appears to be challenging a multi-month downtrend that has been in place since November, thanks to a minor recovery from the lows.
“The two previous breakthroughs in the last year have resulted in enormous bullish swings,” Hyland said alongside a chart depicting the action on Twitter.