Bitcoin is facing intense selling pressure, but the positive divergence on the RSI suggests a recovery is possible in the near term.
The S&P 500 Index (SPX) rose about 2% last week to hit a new lifetime high, while Bitcoin (BTC) collapsed 11% during the same period to hit its lowest weekly close in four months. This shows that Bitcoin has been underperforming the equity markets in the near term. However, some solace for the Bitcoin bulls comes from maintaining BTC price above the critical support of $56,552.
Bitcoin’s weakness has resulted in a pullback in several altcoins, which several investors view as a buying opportunity. According to CoinShares July 8 report, digital investment products witnessed inflows of $441 million last week.
The major question in every investor’s mind is whether the correction is over or whether Bitcoin will fall further. While it is difficult to state with certainty, some analysts believe a bottom may be near. Analysts from the Bitfinex exchange said in their July 8 report that Bitcoin may have formed a local bottom.
