Bitcoin catches its breath after falling from its peak

October 22, 2021 - 1 month ago
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Bitcoin is catching its breath on Friday, after surging to never-before-seen highs this week after the debut of the first U.S. bitcoin futures exchange-traded fund.

The launch of the first bitcoin futures ETF this week saw the primary cryptocurrency bitcoin stage a mad dash to a new high this week, soaring to an all-time high of $66,976.00 yesterday, while the second most popular cryptocurrency, Ether, rose above $4,000 for the first time since May.

The ProShares Bitcoin Strategy Exchange-Traded Fund (BITO) started trading on October 19, which coincided with Bitcoin’s rise to six-month highs.

In its first two days of trading, BITO amassed assets of over $1 billion, according to ProShares.

After failing to close above the $65,000 level now puts a temporary consolidation phase into play.

However, the broader target holds to $72,000 and $80,000. Reassess from there.

Based on the technical assessment, the digital asset’s advance was so strong that the coin entered into “overbought” territory, viewed from the 3-day lookback Relative Strength Index (RSI) after hitting the region of 89.

Assets are considered overbought if the 3-day RSI lookback crosses above 80 and oversold if it falls below 20.

Thursday’s session displayed a fall as much as -7.4% to $61,877.00 just a day after hitting an all-time high of $67,000.

In other news, the price of Bitcoin rapidly plunged about 87% on Binance’s U.S. exchange Thursday, sinking to as low as $8,200 from around $65,000.

The price did nothing like that on other venues, and on Binance the level almost immediately snapped back to where it had been.

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