For the fifth consecutive day Bitcoin (BTC) and the wider digital asset markets have seen significant gains of over 25% on the week. Relative Strength Index (RSI) has been heading northbound crossing the 50 mark in the past 24 hours.
The 1H RSI has been crossing into overbought territory on 17th, 18th, 19th and 20th December.
The sustained buy pressure across multiple days and assets has led many to question whether the digital asset market has begun its cyclical turnaround. Having sustained significant price declines in 2018, many investors have fled the market believing the “bubble” to have burst. Others remain confident that with institutional adoption, the bulls will return. Long-term strategists are largely unaffected and will continue to hold.
Having had four days in the green, short callers are expecting for the dead cat bounce to drop. Conversely, optimistic individuals may see this as the turning of the tide. Having reached close to $100B recently, the total market capital has grown to currently $132B. Given the global downturn in stocks and equities, investors from more traditional markets may be looking to digital assets, injecting fresh capital.
Whether the bullish momentum can continue is the question of the day. Analysts and influencers remain cautious of calling the bottom. Here at bitfudge, we feel it’s too early to call. we are not expecting a significant bull run at this stage. Given the volatility seen with digital assets, a gradual increase in price over a longer period would ensure a more stable outlook going forward. We will continue to monitor the data.
What are factors causing this week’s bullish behaviour? Let us know in the comments below.