06
Nov

Bitcoin In Overbought Land; Is Something Bigger On the Horizon?

Last week, we talked about Bitcoin’s run at $9.5K and how it could spell a potential breakout. Well, that didn’t happen, with the leading cryptocurrency once again falling down although not by much. Currently, BTC hovers right around the $9.4K mark and is up 2% over the past 24 hours. Although it doesn’t instill strong belief among traders, there could be a new short-term trend forming that could see Bitcoin shoot up near the $10,000 mark.

After the price jumped by over 30% on October 25, Bitcoin is struggling to push past the $9.5K mark. As it seems, the cryptocurrency is stable with bears struggling to keep bulls in control. The crypto community is pretty divided in terms of what comes next – some experts expect the price to slide further down, while others suggest that there’s something brewing on the horizon.

Bitcoin Enters Overbought Territory; Price Likely to Drop Soon

Leading financial outlet Bloomberg doesn’t have good news for Bitcoin traders. In its most recent article, Bloomberg suggests that the price is poised for another decline, citing technical indicators as the reason for the claim. At the moment, Bitcoin’s price resembles the August trading highs and the subsequent drops. If it stays like this right now, we are in for another drop.

Up until now, Bitcoin couldn’t seem to pass the psychological $10K mark. The global strength indicator is at 70 at the moment, which is the highest since August. If you follow Bitcoin’s price, you know that back in August the leading cryptocurrency was flirting with $12K. Bloomberg believes the same is happening right now but with $10,000 instead of $12,000.

Since October 25, Bitcoin has been stuck in the same price range, and not many experts are excited about the future. The October 25 breakout was most likely triggered by China’s blockchain engagement although this was never officially confirmed.

And, while major experts such as Bloomberg are pessimistic, certain crypto traders suggest that rarely anyone is seeing the forest from the trees right now.

Could There be Something Big on the Horizon?

A Twitter user that goes by Mr. Anderson tweeted something pretty interesting a few days ago. According to the crypto trader, there’s something bigger brewing for Bitcoin. Traders are supposedly missing out on the bigger picture while focusing on Bitcoin’s short-term moves. Taking Bitcoin’s current low volatility in account, Mr. Anderson is convinced that big things are to happen.

This goes in line with Binance CEO Changpeng Zhao’s comments that the leading cryptocurrency could shoot up to $16,000 around November 1. Although it has obviously missed the mark, we’re still at the beginning of the month and anything could happen. As we’ve seen hundreds of times before, pinning down the price of Bitcoin is next to impossible. Although most technical indicators don’t suggest a breakout, Mr. Anderson does have a point in regards to the low volatility.

If he’s right, traders will soon have thousands of reasons to celebrate.

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