Is Bitcoin’s monster rally over for now?
After posting record high after record high, here’s the relevant question: is (Bitcoin’s) giddy rise now set for a fall.
The crypto-currency hit yet another fresh record high of above $2,300 on Wednesday. That came after it rose 9% on Monday to trade above $2,200 for the first time, after closing last Friday at a then record high of $1,913.
Bitcoin is up some 130% since the start of the year and has risen close to 400% from a year ago as an increasing number of companies seem willing to assume exposure to the digital currency.
It has also become a safe haven currency for political risk. Ironically, the biggest group of buyers are Japanese nationals, holders of the safe-haven yen. Japanese regulators are some of the strictest regarding trading in digital currencies.
So, should you invest in Bitcoin? If you believe what you are witnessing is a stampede then prudence would suggest investors should wait for a correction before getting exposure to the asset.
“To say that the RSI is overbought is an understatement,” an Investing.com analyst says in an article for the global financial site. The RSI, or relative strength index, charts the strength or weakness of an asset based on recent closing prices.
Stochastics measure the relationship between closing prices and price range for a set period of time.
He says it is anyone’s guess as to when to get into the market. His suggestion: when the digital currency’s price returns to its last uptrend line in late March, probably at the $1,650 level.