The sentiment in the digital currency markets continues to improve due to a lack of negative headlines and developments in the industry. The ongoing rally is partly fuelled by the so-called fear of missing out or “FOMO”, where traders tend to join the ascent in order not to “miss this train”. However, without fresh catalysts, the ascent will hardly continue much from the current levels.
As for the technical factors, there are some signs pointing to a correction risk already. As such, the in the shows signs of fading impetus, is indicating overbought conditions, while the $7,800 area serves as a rather stiff resistance on the way to the $8,000 handle. Therefore, the coin could see a corrective retreat before another push higher.