Bitcoin price is back above $46,000 but some technical indicators suggesting BTC is oversold
Bitcoin price is now back above $46,000, but the cryptocurrency is down around 6% over the past week, with some technical indicators suggesting it is oversold. At the time of writing, the price is trading at $46,704.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price returns above $46,000
Sell as a temporary retracement and expect buyers to step in. Because Bitcoin has had seven consecutive weeks of positive momentum, leading to an overheating scene. Therefore, this time is also seeing it as a positive correction for the leading cryptocurrency.
“The average Bitcoin 30-day trader returns are in the red for the first time since July, implying a lower than average risk opportunity to buy. A return of -3% isn’t extreme for this timeframe, but it’s an encouraging sign that euphoria has cooled off”, Santiment stated.
Realized volatility is now on the rise, and the market may go through a period of ranged price action. As you can see, the increase in 10-day and one-month realized volatility for BTC and ETH during the crypto sell-off earlier this week.
Bitcoin and ETH realized volatility (Delphi Digital)
However, implied volatility remains low compared to the sell-off in May. And although some analysts do not expect the volatile trading conditions to continue this month.
Also, as Glassnode reported not long ago, during the sell-off, over 10.3% of the Bitcoin supply transitioned from holding an unrealized profit to now holding an unrealized loss. This indicates that around 1.94M $BTC has an on-chain cost basis between $45,800 and $52,600.
Most of today’s altcoin market is green. The top 10 CoinMarketCap has Polkadot (DOT), which recorded the highest increase at 14% in the past 24 hours, trading at $31.83. The overall cryptocurrency market cap now stands at $2.137 trillion. Bitcoin Dominance is at 41.4%.
At present, AZCoin News has received the news four XRP trading pairs started showing up on the mobile app of the Coinbase Pro exchange. But, the exchange was quick to shut down the relisting rumors that started swirling on social media. This has somewhat affected the price of XRP. We will update more details. Please follow us to receive the official information.
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