Bitcoin’s Value Projected to Stall as Relative Strength Index Inches Towards Overbought State, Crypto Observer Says

Bitcoin has successfully maintained its $7,000 position after it broke resistance level last week. As of this writing, the leading cryptocurrency is trading at $7,693 and has grown 3.63 percent in the last 24 hours.

If Bitcoin manages to hold its ground, then it’s expected to break the $8,000 mark soon, Coindesk reported. The bulls have been busy lately as they push the cryptocurrency upward while the bears seem to run out of gas.

However, if the bulls themselves get exhausted then Bitcoin’s value is projected to freeze. The Relative Strength Index (RSI) is inching towards overbought conditions as data is showing it’s at the 63 level. RSI is considered overbought when it goes over 70 while it's regarded to be oversold if it falls below 30.

Meanwhile, Ethereum, the second largest cryptocurrency in the world, is seeing a slight decline of 0.38 percent in the last 24 hours. It’s currently trading at $463, down from its recent high of $513. Bulls for this crypto are seeing that Ethereum will see a similar growth that Bitcoin saw, although not to the extremes that Bitcoin experienced.

Last week, Bitcoin managed to increase its value by $600 in merely half an hour, a rare case even when price swings are apt to occur. Several developments in the crypto market have influenced this sudden spike in value, with those concerning BlackRock and the Chartered Financial Analyst Institute among the most influential of them.

While Bitcoin is enjoying a steady growth, the European Union released a statement that cryptocurrencies’ advancement will potentially be stalled in the future. “The arrival of permissioned cryptocurrencies promoted by banks, even by central banks, will reshape the current competition level in the cryptocurrency market, broadening the number of competitors,” the fintech report warned. It will be interesting to see if this development occurs as banks going toe to toe against the cryptocurrency will provide a slight hint what the future of the financial market will look like.