Bitcoin has been consolidating after a two-week rally as a cautious mindset crowded out the risk appetite that drove various assets higher earlier in the year.
Bitcoin fluctuated between gain and loss on Thursday and is up 0.2% to $20813 as of 12:50 pm. in Singapore. Other Cryptocurrencies like Solana and Polkadot have grown a bit. Bitcoin retreated 2.5% on Wednesday, halting its longest daily advance since 2013.
Bitcoin has become very overbought in the short term and is in for a short-term pullback.
Stocks fell and Treasuries rose on Thursday on fears of economic growth, and these fluctuations were reflected in Cryptocurrencies as well.
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Bitcoin’s two-week Relative Strength Index has slipped from over 90 but remains still above 70, the threshold for overbought conditions, which could mean a pause in Bitcoin’s rally in 2023.
Bitcoin and the top 100 Cryptocurrencies are up more than 20% this year, smoothing out part of last year’s decline. This was explained by the fact that the increase in interest rates is completed as inflation is controlled.
Cryptocurrencies have lost about $2 trillion since their November 2021 high, causing a number of institutional and retail investors and traders to get rid of Crypto.
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