bitbank
bitbank is one of the largest cryptocurrency exchanges in Japan, which holds more than 600,000 users and 31 available trading pairs, with approximately 20~30% spot-volume share domestically. Users can trade cryptocurrencies in spot markets on exchange and on OTC basis. bitbank has also partnered with Mitsui Sumitomo Trust Holdings Inc., one of the largest specialized trust bank groups in Japan, to establish a certified digital asset trust custodian company, Japan Digital Asset Trust Preparatory Company, Inc. (JADAT), in Japan. bitbank is ISMS certified and abides by every financial regulation standard prescribed by the Japanese FSA.
Nov 13, 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
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