Bitcoin’s Value May Fall Again Following Yesterday’s Price Surge But Will Rally Shortly After, Crypto Observer Says

Yesterday, Bitcoin managed to reverse the bearish trend into a bullish one, breaking through the resistance level that held the leading cryptocurrency below $7,000. As of this writing, Bitcoin is trading at $7,357 down from its most recent high of $7,534.

Coindesk reports that a downward trend will likely follow Bitcoin’s sudden price spike. The crypto observer explains that the decrease suggests that the bulls are trying to profit after they successfully push Bitcoin’s value by over $1,300 in the last 72 hours.

Moreover, the Relative Strength Index (RSI) chart suggests overbought conditions. The RSI usually swings between zero to 100 and overbought behavior can be observed if the figure goes up above 70, while it’s considered oversold when it falls below 30.

According to this chart, RSI has already oscillated to 80, which indicates that a decrease in value is expected to occur. The plummet will continue to persist if Bitcoin fails to support at the 58 level. If it does, it will likely go down below $7,000.

Investors who missed the initial Bitcoin low purchase can take advantage of this as the price pullback is expected to last for only a short while before the cryptocurrency rallies again. On the other hand, if Bitcoin manages to break above resistance pennant level seen at the $8,210 mark, the bullish trend will likely continue and the cryptocurrency can reach new highs.

As the market starts to swing in favor of the bulls, bullish investors have again forked over their own predictions for Bitcoin. The latest among them is the co-founder, chairman, and CEO of Avenue Capital Group, Marc Lasry.

In his interview on CNBC this Wednesday, Lasry said that Bitcoin’s value can skyrocket to $40,000 soon. He revealed that he has invested about 1 percent of his personal fund in Bitcoin, with his net worth estimated to be around $1.68 billion.