One of the most popular crypto analysts on YouTube says two key indicators show Bitcoin (BTC) is overextended – but that doesn’t mean the current rally is over.
Nicholas Merten (aka DataDash) told his 314,000 subscribers he believes BTC is eyeing a push to $10,000 before a potential 40% pullback.
“Is Bitcoin overvalued? Well, a lot of the indicators will tell you that. Obviously the RSI is showing that it’s overextended… We’ve also seen NVT is extremely overextended. We’re not setting new highs on it in this relative sense. We had that back a few days ago, so transaction volume is increasing. But we’re still way overextended. This is very similar to what we saw back in 2014.
So even with all these things, it’s time for Bitcoin to correct, right? Well, no. I wouldn’t say that’s exactly the case. We very much could go on to the big even at $10,000 which is a very key level price-wise, but it was resistance back here in May of 2018, almost a year ago. So, it wouldn’t be too radical to think that if it’s already done this, that it’s probably going to go to $10,000. Now I wouldn’t set your sell orders exactly at $10,000 or try to time the market. I’m not going to recommend you do anything. I think most of us agree that hodling is probably one of the better ways to play this market. Stop trying to play it and get too crazy.
I just like to cover the price action just to guesstimate where we’re going and what would be some good pullback points. But I think $10,000 is very likely and then after that we’re going to have a very similar correction down 40% – what we saw in the last parabolic run-up back here in 2015. And that’s going to lead us down to a range where we can actually go ahead and be able to pick up some nice cheap Bitcoin.”
Right now, Bitcoin is up 9.39% at $8,743 according to Coin360. Ethereum is up 7.13% at $268.27 and XRP is up 9.99% at $0.4208.
Technical analysts are checking Bitcoin’s chances of hitting $10K as altcoins rise with the tide.
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