Bitcoin technical analysis (30% pullback?) Monday, April 4, 2019

During today session Bitcoin price continues to increase, positioning above $5200 however the increase in BTC is moving above 80% in the RSI indicator which could bring a 30% drop in the resistance of the $6000 – $6135 so I recommend taking care with that pullback.

Many investors are waiting for BTC to reach maximums which are between $6000 and $6135 so once this happens BTC could fall to $ 4100 and then continue with an increase, in addition the RSI needs to leave the current overbought area so that a pullback is something that could be in the next corner.

Key Highlights

  • Bitcoin in overbought area 80%
  • Possible 30% drop from $ 6000
  • Volume consolidation

Analyzing the BTC/USD chart in a 1-day period we can see how BTC moves towards the $6000 resistance in the overbought area, so a purchase in this area is risky.

If BTC continues that way there are high probabilities that many investors take profits in the $6000 and then buy back in the $4100 approximately.

The moving averages EMA 9/26 still continue in an upward trend; however this move is being made in an overbought area so we cannot believe the EMA traced.

BTC/USD Time Frame 1 day

Technical indicators

  • Moving Averages EMA 9/26
  • RSI (relative strength index) 86%
  • 4100 support
  • $ 6000 resistance

 

Disclaimer
This analysis should be used as an information medium; it does not pretend to be an investment advice. Investing in cryptocurrencies is highly risky; avoid investing the money that you cannot afford to lose.