This morning, Bitcoin has already reached $5,856 but the question that everyone is asking is, will the rally continue?
At the time of publication, Bitcoin was at $5,610, according to CoinMarketCap. Bitcoin‘s productivity for the week is more than 28% (more than $ 1,200). The Crypto currency increased by 96% from its September 15 low of $ 2980 and, compared to last year, by almost 500%.
After a rally of such amazing proportions, it would be logical to assume that Bitcoin‘s price will be sideways or we will see a retreat in the short term.
Analysis of the price movement shows that Bitcoin can find a short-term peak in the range of $ 5800-6000.
– Bitcoin’s price undergoes a corrective rebound every time the stochastic and relative strength index (RSI) indicate overbought conditions. The stochastic oscillator is an indicator of chart analysis and helps determine where the trend may end.
– The trend line, drawn from the low of July 16 and the low of August 22, demonstrates resistance at about $ 6,100.
– Despite overbought, RSI is still growing. Meanwhile, the stochastic wants to retreat from the overbought territory.
– The technical correction will increase as soon as the RSI starts to lose altitude.
-There is a short-term consolidation of about $ 5800 or a short-term spike of up to $ 6000, followed by a short-term pullback to $ 5000- $ 5,300.