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