- Bitcoin strengthens despite USD stability, highlighting growing market confidence and bullish investor sentiment.
- BTC’s RSI indicates overbought conditions, while MACD suggests bullish momentum with potential consolidation ahead.
- Bitcoin dominance dips as altcoins rally, reflecting a diversified market amid robust institutional activity and reduced volatility.
Pushpendra Singh, co-founder of PushpendraTech, recently highlighted a notable market sentiment shift, quoting Finance Minister Nirmala Sitharaman: “$ is not falling, #bitcoin is strengthening.” His comment underscores Bitcoin’s resilience amid market fluctuations. Priced at $76,329.60, Bitcoin holds a 24-hour trading volume of $29.18 billion, though it has dipped 0.55% in the last 24 hours.
Market Indicators Suggest Overbought Conditions
Bitcoin’s Relative Strength Index (RSI) stands at 70.47, signaling overbought conditions. Historically, this suggests a potential pullback or consolidation phase. However, bullish momentum could sustain high RSI levels for longer periods.
Related: Crypto Analyst Predicts 40% BTC Rally Before Sell-Off
Moreover, the MACD indicator remains positive. The blue line is above the orange signal line, reflecting bullish momentum. However, a narrowing gap between these lines hints at a possible slowdown.
Volume analysis reveals a decline following a recent surge, suggesting a temporary lull in buying pressure. Nonetheless, trading activity remains robust. Bitcoin’s current support level is $74,000, while resistance levels stand at $77,000 and $80,000.
Related: Donald Trump Wins The U.S. Presidential Election: BTC Price Hits New All-Time High
Bitcoin’s market cap remains strong at $1.51 trillion, with a circulating supply of 19.78 million BTC. Its maximum supply is capped at 21 million, reinforcing its scarcity-driven value proposition.
Bitcoin Dominance and Altcoin Rally
Bitcoin dominance has dipped to 57.88%, as altcoins gain traction. This indicates a diversified market rally beyond Bitcoin. Additionally, BTC exchange balances continue to shrink, a bullish signal as holders move assets off exchanges.
Furthermore, open interest in Bitcoin futures increased 1.24% to $86.34 billion, despite a 22% drop in futures volume. Reduced liquidations, down 20.67%, reflect diminished volatility and a stabilized market environment.
Bullish Sentiment and Institutional Activity
The Crypto Fear & Greed Index remains at 75, reflecting heightened bullish sentiment. Institutional activity is evident, with large transactions totaling $145.14 billion in the past week. Meanwhile, net outflows of $628.58 million support the bullish outlook as holders exhibit long-term confidence.
Notably, 99% of Bitcoin holders are currently in profit, with 71% holding for over a year. These metrics reinforce Bitcoin’s appeal as a long-term investment. Changellyblog analysts forecast that Bitcoin’s price in December 2024 will range between $59,821.02 and $84,052.07. The average trading price is expected to hover around $71,936.55.
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Source: https://coinedition.com/bitcoin-strengthens-amid-usd-stability-but-rsi-signals-a-catch/