Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
How Deep Will Crypto Dive? BTC Dominance and RSI Reveal Clues

How Deep Will Crypto Dive? BTC Dominance and RSI Reveal Clues

CoinEditionCoinEdition2024/12/20 16:00
By:Parth Dubey

Fear and Greed Index reads 62, translating to “Greed” in the market. The Bitcoin weekly RSI suggests that demand is still very high for BTC. Altcoins are undergoing a brief correctional phase after reaching overbought levels.

  • Fear and Greed Index reads 62, translating to “Greed” in the market.
  • The Bitcoin weekly RSI suggests that demand is still very high for BTC.
  • Altcoins are undergoing a brief correctional phase after reaching overbought levels.

The crypto market crashed significantly in the past few days after Bitcoin (BTC) hit $108K. Traders secured profits once BTC reached $100K, while Ether (ETH) fell below $4,000 and now stands at $3,480.

BTC dominance soared to 56.8%, which pushed altcoins lower. The market leader remains at $97.6K, down 10% from its peak.

The Greed and Fear Index shows 62, reflecting considerable demand for BTC and other digital assets. The Relative Strength Index (RSI) for Bitcoin on the weekly chart reads 69.86, suggesting a longer-term bullish outlook. On the daily chart, RSI turned neutral.

How Deep Will Crypto Dive? BTC Dominance and RSI Reveal Clues image 0 How Deep Will Crypto Dive? BTC Dominance and RSI Reveal Clues image 1

As seen in the chart provided by TradingView above, the gradient of the weekly RSI line is on a sharp decline, which means that lower prices might be seen for a brief period before the bulls take chart once again. A retest of $100K is potentially possible.

Read also: Bitcoin 21M Supply Cap Under Scrutiny After BlackRock ETF Explainer

Altcoins Outlook: How Deep Will Crypto Dive? Key Indicators to Watch

The weekly chart for cryptocurrencies outside BTC and ETH shows an RSI of 62, pointing to strong altcoin demand. A pullback after an overbought phase is common in a bull market, and current prices reflect that.

How Deep Will Crypto Dive? BTC Dominance and RSI Reveal Clues image 2 How Deep Will Crypto Dive? BTC Dominance and RSI Reveal Clues image 3

Moreover, the Moving average convergence/divergence (MACD) indicator is still bullish with the signal line (red) below the MACD line (blue) and the histogram also remains green but the intensity of the color suggests a price correction. It is important to note that in the longer run, altcoins are bullish and the current dip could be an opportunity to buy more.

Read also: Altcoin Season Anticipation Grows Despite Crypto Market Crash

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!