Crypto market analysis of November 13th, 2023
Written by Yuya Hasegawa, bitbank
Despite Fed chair Powell’s comments on possible additional rate hike last Thursday, bitcoin continues to fluctuate around $37k. The wider financial market seems to hold optimism for the U.S. CPI and retail sales to indicate slowing inflation and demands this week, and if they do, bitcoin could test $38k again. In the short term, recovering that level could cause option traders who are shorting OTM calls to long bitcoin and accelerate its rise to around $40k.
However, bitcoin’s relative strength index (RSI) continues to diverge from the price trend, which usually indicates a trend reversal. RSI’s divergence has occurred twice this year and they usually last about one month until the price changes its course (Fig.1). The current RSI divergence began on October 25, so the current bitcoin’s price trend may start to reverse towards the end of the week.
Therefore, if bitcoin manages to recover $38k in the short run, that could be its last leg up in the current trend.
Fig.1: BTC/USD and its RSI
Source: Glassnode
Disclaimer
I confirm that I have read and understood the following: The information contained in this article is strictly the opinions of the author(s). This article was authored free from any form of coercion or undue influence. The content represents the author's own views and does not represent the official position or opinions of CrossAngle. This article is intended for informational purposes only and should not be construed as investment advice or solicitation. Unless otherwise specified, all users are solely responsible and liable for their own decisions about investments, investment strategies, or the use of products or services. Investment decisions should be made based on the user’s personal investment objectives, circumstances, and financial situation. Please consult a professional financial advisor for more information and guidance. Past returns or projections do not guarantee future results. This article is provided by CrossAngle’s third-party research partners. CrossAngle does not have any editorial control over this article and does not warrant the accuracy and timeliness of the information contained herein. This article may contain links to third-party websites, over which CrossAngle disclaims any control or responsibility.
Xangle or its affiliated partners own all copyrights of the written or otherwise produced materials and content provided on the platform. Any illegal reproduction of such content, including, but not limited to, unauthorized editing, copying, reprinting, or redistribution will result in immediate legal actions without prior notice.
