Olga Kharif, from Bloomberg, reported, “The Williams Percent Range (WPR) of Bitcoin is hovering at around -83 percent. In WPR, -80 to -100 percent is considered oversold and -0 to -20 percent is oversold.”
Williams %R, is a technical analysis oscillator that is widely used for analyzing the oversold and overbought conditions for an asset type. Of note, the William % R (WPR) is demonstrating highly oversold condition for Bitcoin.
This resistance level will likely stabilize. However, the oversold condition will be followed by a corrective rally. Bitcoin is exhibiting a major resistance level at $6,900. The corrective rally will feature Bitcoin breaking out of its major resistance level.
Bitcoin has bounced from its $6,000 mark. This mark was seen in February, which eventually led to a high in the subsequent month only to have the currency to fall back to $6000 to stabilize. A similar trend was seen in the past two weeks thereby indicating a probable corrective rally.
The most stable month for Bitcoin was in the month of August ever since June 2017. The range of Bitcoin value remained somewhere from $6000 through $6,500. Moving forward, since September 15, the price of Bitcoin continues to remain at $6,550.
If the asset should achieve a mid-term rally post the 80% correction, there needs to be a stabilization and bottoming out process to taking place. The BTC trend showed a surge by 17% in just a two week period.
BTC has been going uptrend gradually from the $6,100. This uptrend is happening regardless of the influx of positive developments in the cryptocurrency sector. “Citigroup, Morgan Stanley, and Goldman Sachs” were doubling down in their attempts to institutionalize Bitcoin by launching crypto custodian solutions.
Over the past three corrective rallies, BTC was seen to be vulnerable to the 20 to 40 percent falls because of its tendency to initiate large-scale corrective rallies within a short period of time.
For instance, in the month of April, BTC went up from the mid-$6,000 to $10,000. And this uptrend was within just a three-week period. This rally ultimately led BTC to eventually record a 50 percent drop in the subsequent month.
Stabilization of Bitcoin is crucial if it should initiate a suitable rally by the end of 2018. When the stability sets in a wave of new capital will bit the cryptocurrency market. This new wave will be fuelled by the coming of several institutional investors.
There were no custodian solutions in the past year. Therefore, there was no sufficient facilities to help with the movement of funds from the broader financial market to the cryptocurrency market. A couple of exchanges have been already licensed to work as trusted custodians in the US market.
Unlike Bitcoin, ETH, the native cryptocurrency of Ethereum, has increased by more than 40 percent in the past week.
Diar, a cryptocurrency-focused research group, found out that “ Initial coin offering (ICO) projects still have more than 50 percent of their ETH reserves.” On Sept. 15, “ETH recorded yet another 10 percent increase in price, surging to $225.” The asset is vulnerable to a short-term crash.
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