The surge that increased Bitcoin (BTC) by more than 2.4% today may be short-lived. It came suddenly and was not widely anticipated, especially on Easter Sundays and long weekends, but the surge caused a clear shift in emotions among participants in the crypto market.
From uncertainty, fear, doubt to greed, moods change rapidly, and some experts are calling this a last chance to buy Bitcoin before reaching $100,000, or even the $200,000 BTC predicted by Robert Kiyosaki.
But the harsh reality may be that a sudden rally is about to end here. There are many reasons to support this prediction, but three in particular stand out.
First, after today’s surge, Bitcoin prices have reached a 200-day moving average on daily charts. Previously, Bitcoin broke this important line in March, tested it in early April, saw rejection and now it’s back.
The second reason is technical and includes the Bollinger band. By chance, the upper band of this popular indicator once matched exactly with the same point where there was a 200-day moving average. Furthermore, after the spikes, Bitcoin hit the upper band.
Finally, the third reason is that on the weekly charts, Bitcoin’s RSI indicators have hit trendline resistance that continues even after previous bearish divergence on the charts. If you look closely, you will see similarities to the situation in September 2024.
But at the time, BTC managed to outweigh that resistance, and now I’ve only touched on it.
Adding to this, the story of Bitcoin trying to follow in the footsteps of precious metals and Michael Saylor trying to buy $555 million worth of BTC is a headline that screams “the best ever” for money.
Optimism is undoubtedly in the air, but also the perfect conditions for yet another cruel sale that has overly excited market participants.
