Bitcoin Nears $44K Amidst U.S. Stocks' Biggest Quarterly Loss

• Bitcoin Approaches $44,000, Reversing Earlier Losses
• Crypto Market Responds to Broader Market Decline
• Strong Market Optimism for Bitcoin
• Bitcoin Market Metrics Indicate Potential Cool Down
• RSI Indicating a Cooling Trend

Bitcoin Approaches $44,000, Reversing Earlier Losses

Crypto Market Responds to Broader Market Decline

Trending tokens like Solana$104 5.03%'s SOL and Avalanche's AVAX, along with Bitcoin, faced a setback following the broad market drop but ascended during the early Asian hours on Thursday. SOL saw a rise of 15% in the last 24 hours, continuing the gains from a multiple-week rally to over 55%.

Strong Market Optimism for Bitcoin

The positive sentiment among traders for Bitcoin remains strong. This sentiment is fueled by the anticipated approval of a spot exchange-traded fund (ETF) in the U.S., which could boost demand, and the impending halving event scheduled for April 2024. Historically, this event has led to bull runs in the crypto market.

Bitcoin Market Metrics Indicate Potential Cool Down

However, a few traders have noticed that the current Bitcoin market metrics are hinting at a cool down period after a rally that lasted a month. This suggests a possible period of low volatility as the holiday season approaches. Rachel Lin, CEO and co-founder of SynFutures, comments, "This week has seen a sideways trend, with bitcoin fluctuating between $40,500 and $43,500 and ether fluctuating between $2,150 and $2,250.

RSI Indicating a Cooling Trend

Lin also mentions that one significant effect of this sideways movement is the cooling down of the Relative Strength Index (RSI). Two weeks ago, the RSI was in a highly overbought territory. Bitcoin's weekly RSI is now around 75, down from 82 at the beginning of the month, Lin added. The RSI indicator measures the magnitude of price movements for assets, with readings below 30 indicating that the prices of an asset have dropped more than its fundamental value.

Edited by Jonathan Stoker