Market Wrap: Bitcoin Steady Near $54K; RSI Indicator Warns of Limited Uptrend
- Bitcoin (BTC) trading around $53,824.22 as of 20:00 UTC (4 p.m. ET). Climbing 3.22% over the previous 24 hours.
- Bitcoin’s 24-hour range: $51,267.19-$54,032.05 (CoinDesk 20)
- BTC trades above its 10-hour and 50-hour averages on the hourly chart, a bullish signal for market technicians.
Friday’s record $6 billion expiry in the bitcoin options market turned to be a nonevent as prices for the largest cryptocurrency climbed steadily, with nary a glimpse of the feared plunge to the “max pain” point of $44,000.
For bitcoin bulls, the absence of action brought a measure of relief, with prices ticking up 4.8% on the day to about $53,800, allowing the 12-year-old digital asset to reclaim its losses from the past couple days.
With March coming to an end, one analyst said bitcoin should get “a nice tailwind” as hedge funds rebalance for quarterly reports or to manage risks.
“Both bitcoin and the S&P 500 have reached new all-time highs every month since December,” said Sean Rooney, head of research at Valkyrie Funds.
Such upward momentum could be limited. A widely tracked technical indicator, the monthly relative strength index (RSI), is signaling bitcoin is near an extreme overbought level.
“The RSI reading on the monthly chart is trading at extremely elevated levels,” Joel Kruger, cryptocurrency strategist at LMAX Digital, told CoinDesk. It “suggests the market should see limited upside for now, with risk for correction and consolidation.”