Bitcoin shows signs of exhaustion and bull movement begins to slow down | Future of Money

Bitcoin showed signs of exhaustion near the $47,000 range and saw buying pressure begin to ease around that price range. That’s what some experts say about the price of the cryptocurrency, which returned to trade below 45,000 dollars on Thursday, 12, after three days of high.

At the moment, the price of bitcoin remains close to $44,500, shortly after hitting a high of $46,767 in the last 24 hours. According to analysts, the price of bitcoin is likely to face strong resistance around $50,000.

“Derivatives markets are long, perpetual finance rates are positive for sale, indicating positive short-term retail interest,” said Toby Chapple, head of trading at digital asset firm Zerocap.

On the institutional side, things look a little different, according to Chapple, who said that futures calendars, both bitcoin and ether, were “very compressed”, pointing to the growth of open contracts for short positions.

(TradingView/Coindesk/Playback)

Bitcoin rose 50% in a three-week period, breaking a long-term moving average from strong institutional and retail demands. Still, the cryptocurrency shows signs of exhaustion, as seen by the relative strength index, an indicator used to measure a particular trend.

“Markets need to assimilate some levels of overbought before trying to overcome the $50-55,000 resistance,” said Zerocap’s Chapple.