Bitcoin’s quick drop from a 4.5-month high of $5,345 to levels below $5,000 validates the extremely overbought readings on the 14-day relative strength index.
BTC could consolidate around $5,000 with a negative bias over the next day or two. A pullback back to key support levels at $4,672 and $4,565 (200-hour MA) can’t be ruled out.
The longer-term outlook will remain bullish as long as bitcoin’s price holds above the former resistance-turned-support of $4,236.
Bitcoin (BTC) could be in for a minor price pullback as the RSI is showing the most overbought conditions for 16 months.
The crypto market leader cruised past the crucial resistance at $4,236 on Tuesday, confirming a longer run bearish-to-bullish trend change and hit a 5.5-month high of $5,345 yesterday, according to Bitstamp data.
With the near 30 percent rally to 4.5-month highs seen in the last 48 hours, bitcoin’s 14-day relative strength index – a widely-followed momentum indicator – has jumped above 70.00, indicating overbought conditions. In fact, the RSI is currently seen at 89.11, its highest level since December 2017.
An overbought reading on the RSI is often taken to be a sign of impending bearish reversal. In reality, however, an above-70 print merely indicates that the rally is overdone and a reaction – a price pullback – could be in the offing. Learn more about Hypixel Skyblock Shop
These overbought indicators become valid only when the price begins to flash early signs of buyer exhaustion, which seems to be the case with BTC.
The cryptocurrency witnessed a sharp drop to $4,800 within two hours of hitting highs above $5,300 at 21:00 UTC yesterday and is now struggling to hold onto price points above $5,000.
As a result, price consolidation or a deeper pullback to $4,600 could be seen in the next couple of days.
Bitpanda Receives Payment License from the European Union
In an official blog post published on April 4, 2019, the Viennese cryptocurrency brokerage platform Bitpanda confirmed that it has received a license to operate as a payment service provider in Austria.
Specifically, Bitpanda received the Payment Services Directive 2 (PSD2) license, an order that provides oversight into the operation of service providers in both the European Economic Area (EEA) and the European Union.
With this license in hand, entities in the European financial and technological space can launch new products and services for customers while following clear rules on how to operate within their common market. Bitpanda’s PSD2 was issued by the Austrian financial watchdog Financial Market Authority (FMA).
Bitpanda has kept any future expansion plans under wraps, but obtaining the PSD2 license means the firm can now get a piece of the banking industry’s action and offer new payment solutions beyond its crypto offerings.
“Our goal is to bridge the gap between the modern and traditional financial world,” managing director Philipp Bohrn said, per the blog post. “The payment service provider license will allow us to tear barriers down.’’
Bitpanda’s head of financial services and co-managing director, Lukas Enzersdorfer-Konrad, added that the company’s goals are to “make digital assets spendable anywhere [their] users want.”
Established in 2014 as Coinimal, Bitpanda has built itself into one of the most popular and trustworthy platforms to purchase bitcoin within the Eurozone.