Bitcoin Still Holds Below $45K

Bitcoin (BTC) had a tough weekend. BTC/USD hit $40,700 on major exchanges before bouncing, according to TradingView. At the time of writing, the Bitcoin rate surpassed the $42,000 mark.

Rekt Capital analyst wrote on Sunday that there is a possibility that $ BTC could complete a weekly close above $43,200 (in black) to enjoy the green zone next week. However, a weekly close below ~ $43,200 could push BTC back into the red.

Bitcoin eventually closed at $42,000 as it hovered around that level.

Macro this week is particularly challenging. The consensus is that the US Federal Reserve will soon start raising interest rates, which will force investors to lower their risks.

Former BitMEX CEO Arthur Hayes wrote on his blog that after the interest rate hike, many margin traders will dump or substantially reduce their holdings of cryptocurrencies.

And the founder and CEO of 10T Holdings, Dan Tapiero, advised in these conditions to focus on long-term investment opportunities.

Bitcoin’s Relative Strength Index (RSI) hit its lowest level in two years this week, according to analyst Michaël van de Poppe.

The depth of $42,000 suggests that this level is indeed considered too extreme for the market and a rebound must occur to balance it.

By comparison, in January 2021 the RSI was sky-high and in the “overbought” zone when BTC / USD was trading at the same price.

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