During today trading session Bitcoin price continues above $5000, has repeatedly tried to get back above $5050 but still continues in an area of overbought so the force is not fit.
The RSI needs to go down at least 75% for BTC to leave the overbought area since this is an indicator that many investors are watching for decision making in long trades, it is obviously not a good choice to enter an area of overbought.
- Bitcoin continues Bullish
- RSI in overbought area
- BTC has not managed to exceed $5500
Analyzing the BTC/USD chart in 1-day time, we can see how the price has been consolidated in the $5000. Bitcoin is in an important overbought area so many investors interpret this as a profit taking point.
EMA 9/26 moving average tell us that Bitcoin still has a lot of strength to eventually reach $ 6000, the volume of purchase continues to be important, in summary BTC continues in a bullish rally.
Personally I think that to go long, it is best to expect the RSI to leave the overbought area at 80% and BTC to break the $5100 force with a target at $ 5600.
- Moving Averages EMA 9/26
- RSI (relative strength index) 86%
- Support $4800
- $ Resistance $5600