This article is available in Spain.
Bitcoin is stable at press time. According to CoinMarketCap data, the world’s most valuable coin is changing hands above $63,500, remaining stable over the past day and up 7% over the past week of trading. Technically, the uptrend remains in place as long as prices stay above the support zones around $58,000 and $60,000.
Bitcoin up 30% from August lows, RSI drops below 80% level in monthly chart
At press time, traders are bullish and optimistic, which could form the basis for another uptrend. Since the early August drop, Bitcoin is up 30% so far and is retesting the August highs at around $65,000. However, there is a lot of hope that buyers will push prices above this level, marking another leg up for the confident bulls, a development worth noting in the monthly chart.
Related reading
Speaking to Analyst X, he says, Notes While the bulls are struggling to move above $65,000 and create a new 2-month high, the upside momentum appears to be fading. At press time, the Relative Strength Index (RSI) in the monthly chart is falling, having recently broken below 80%.
Generally, the area between 80% and 100% represents the upper limit of the oscillator, indicating that the coin is overvalued or in the overbought region. With the RSI falling, it can be interpreted that the upward momentum is low, which is a net negative for the bulls.
Since it is printed on a monthly chart, it could have serious implications on the daily and lower timeframes. It could indicate that cracks are forming, and sellers are probably preparing to push lower, especially if the bulls fail to move above $65,000.
BTC price is expected to rise sharply if it crosses $73,000
Even though this is a bearish signal, there is hope. The analyst believes that although the RSI is below the 80% mark, this is not the first time. On many occasions, when the RSI drops to this level, Bitcoin prices rise steadily. Still, this does not happen every time.
Since this is a matter of concern, traders should keep a close eye on the price action in the coming days. A drop towards the $60,000 level would cool down the current momentum, signaling the start of a potential correction.
Related reading
Even with this outlook, the analyst is optimistic. In a separate post, the analyst said that if Bitcoin recovers from weakness and climbs towards $73,000, the coin could surge strongly. When that happens, the analyst Hope New flows of fresh liquidity, especially in the futures markets.
In turn, this inflow could push prices to new levels, perhaps even above all-time highs. Still, before that happens, BTC needs to gain momentum. It will surge, especially if there is a decisive close above the $65,000 resistance line.
Feature image from DALLE, chart from TradingView
