After last week’s Bitfinex and Tether news, bitcoin currently sits in consolidation around the $5,150 zone. Numbers from the Relative Strength Index (RSI) may show the asset has further to fall.
An April 29 article from ChepiCap pointed toward multiple technical analysts on Twitter who are speculating on a possible drop in bitcoin’s price.
HornHairs, one of the mentioned Twitter users, made an observation on April 26 regarding bitcoin’s RSI levels, comparative to historical data. The analyst noted recent RSI divergence on the two-day chart, similar to those in history which led to subsequent moves downward in price. Comparing the current bear market to past bear trends is fairly common practice in the crypto space.
In the past 5+ years, there have been only 5 accounts of a bearish RSI divergence on the 2D chart
Today will mark the 6th
The average drawdown AFTER the confirmation of those previous divs before a significant bounce/reversal was -44.25% pic.twitter.com/zXsddqrWyu
— HornHairs 🌊 (@CryptoHornHairs) April 26, 2019
On the daily chart, crypto’s largest asset also posted seemingly bearish price divergence in relation to the RSI, prior to the most recent substantial price drop. The price, however, likely also saw impact from last week’s Bitfinex and Tether news.
The Chepicap article also included Nick Cote’s thoughts on scenarios leading bitcoin toward either $4,300, or $6,400 levels.
Bear: Below the 2018 support level, 3D stoch RSI cross down below 80 + HTF bear div
Bull: Higher highs + higher lows, increased buyer interest from Asia
Low target = $4,300 area
High target = $6,400 area
I think market needs a resolution on Tether situation. pic.twitter.com/lioZRyT9Op
— Nick Cote (@mBTCPizpie) April 29, 2019
Tone Vays bearish on altcoins
As bitcoin sits undecided on its route, some individuals have an overall bearish view on altcoins in general. Popular technical analyst Tone Vays has stated many times that he thinks many altcoins should be headed toward a price of zero.
At a recent Mexico City bitcoin meetup, Vays answered questions from the audience and posted the video on his YouTube channel on April 27.
Regarding altcoins in general, Vays said, “I take the position that none of the altcoins are going to survive.” Continuing, he explained, “Now I know I will probably be wrong, and a few of them will survive, but it’s irresponsible for me to guess which ones they’re going to be.” Vays has expressed this sentiment many times in the past in various videos he has posted, in one form or another.
The dot-com bubble of the 90s and early 00s saw a situation similar to what Vays is describing. Many companies failed from that era, but a few of them eventually rose from the ashes, turning into powerhouses seen today. Examples of such include Amazon and eBay.
The above is to be considered opinion and not investment advice in any way, as an unbiased media, no one interferes with the Editorial content of CryptoInsider.com, writers have freedom to choose their own direction, members of Crypto Insider do not participate in trades based on content.
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