Bitcoin Nears $100K as Cryptos Surge to New Highs
Correction Incoming as RSI Shows Overbought on Multiple Timeframes
It looks like every day Bitcoin is printing a new high, disregarding any need for retracements, pullbacks, or the overbought RSI. It’s due to a combination of factors, starting with the spot BTC Exchange Traded Funds (ETF) approval in January, followed by the break of the long-term descending channel and Trump’s win in the Presidential Race.
Spot Bitcoin ETFs and stocks of companies heavily focused on Bitcoin have posted a whopping $50 billion trading volume on Wednesday. This was followed by an even more impressive $70 billion on Thursday. MicroStrategy (MSTR), which pivoted to a Bitcoin-centric approach to their investments was the second most traded stock in volume, rivaling Tesla and Nvidia. However, MSTR bled over 25% of its value, dropping from $535 to $389 on Thursday.
Bitcoin ETFs have now surpassed $100 billion in assets and collective inflows have risen above $29 billion.
At the time of writing, Bitcoin is changing hands at $99,040 after reaching a high of $99,500 earlier during the day. This figure may be slightly different depending on the chart data provider you’re looking at but this does not change the fact that Bitcoin is inches away from the legendary figure of $100,000.
Other cryptocurrencies have followed big brother’s lead and climbed to record highs. Ripple’s XRP is the biggest gainer in the Top 10, adding more than 76% in the last 7 days, now trading at $1.38. Cardano (ADA) added 43% during the same period and is currently trading at $0.86. Solana (SOL) breached its previous ATH and added 23% in the last 7 days. It is now changing hands at $259.
Chart Analysis – BTC/USD
Bitcoin is firing on all cylinders and travelled in an almost straight line since the last notable pullback at $69,000. The Relative Strength Index screams overbought on a Daily chart but also on the Weekly and even Monthly charts.
Considering the importance of the $100,000 level, we will likely see a pullback as soon as this price is reached. At that level, sell orders are expected to accumulate, and once triggered, they will send the price lower.
There are no established support and resistance levels at this time, so we should consider all big round numbers as barriers and places where the price may react. Depending on where the correction starts, the potential support levels will be $95K, $90K, and so on. As soon as the price prints more patterns, we will get a clearer picture regarding S/R levels.
