Bitcoin has risen almost 10% in last 24 hours, showing really bullish signs. After opening at $6,739.65 price, BTC price is currently touching $7,392.07. If you are following cryptocurrencies for sometime, this sudden rise in BTC price is nothing sort of a new phenomena. Due to FOMO, in total the crypto markets have added close to $20 Billion in market value in just half an hour.
Thanks to bot activity, everything is a boring mirror image of everything that precedes it. The prices action just keeps repeating itself in an identical manner because the bots can’t get enough of the barts! So, the price will most likely continue trading sideways till it hits the downtrend resistance line and will then start falling down to a new low at $5,400.
Don’t think for a second that shorting Bitcoin at these levels is a good idea. Unless you are a whale, there is a high probability that you may get wrecked. The purpose of this analysis is to indicate the direction of price action and point out the most likely scenario.
Of course, it is possible for Bitcoin to shoot up to $7,500 from here despite an overbought condition indicated by RSI. Is it possible? Of course. Is it likely? No. I would like to mention that I’m still super bullish on Bitcoin at this point. Only a fall and close below $6,000 on the monthly chart would make me lose my bullish bias.
However, if you’re SHORTING don’t use high leverage. If you’re not doing anything, don’t chase the price upwards. It’s insanely overbought as you can see from RSI. You’ll be trading against the trend. Can’t stress that enough. Carefully, watch movement on RSI and Stochastic. All gains might soon get erased. Beware of whales and their pump and dump schemes.
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This article is published with analysis contributed by Fakhan
Disclaimer: Cryptocurrencies investments are full of speculative and market risks. This article is only for information purposes and not an investment advice. Please conduct your own thorough research before investing.