Key takeaways
Bitcoin hit a brand new all-time excessive of $123K, breaking out of key resistance zones and exhibiting robust momentum. Nonetheless, with rising profit-taking indicators and overbought indicators, a short-term pullback or pause now appears doubtless.
Bitcoin [BTC] hit an ATH of $123,000 after weeks of regular features. However indicators are beginning to present that the rally might decelerate, with a brief pause or pullback doubtless earlier than the following large transfer.
So, the place can we go from right here?
Bitcoin clears provide zones, regains momentum
Supply: Glassnode
Bitcoin’s break has not solely marked a brand new ATH, but in addition pushed the market decisively out of a heavy consolidation vary between $100k and $110k.
On-chain knowledge from Glassnode’s price foundation distribution heatmap exhibits that the $93k-$97k and $104k-$110k zones acted as dense accumulation pockets through the latest sideways motion.
Supply: Glassnode
Breaking above these ranges implies that a big share of BTC provide is now sitting in revenue, laying a probably robust base for future pullbacks.
Nonetheless, with costs now above the ninety fifth percentile of price foundation ranges – normally a area of profit-taking – Bitcoin might quickly face the standard cooling-off that follows aggressive rallies.
Brief-term high?
Bitcoin’s rally to $123K coincided with a surge in the 7-day aggregated open curiosity delta, exhibiting a flood of leveraged positions. However that development is now reversing – a traditional marker of an area high.
Alphractal CEO Joao Wedson notes this may increasingly herald a short-term consolidation interval, whilst altcoins acquire momentum.
Supply: Alphractal
Whereas the medium-term bullish outlook stays intact, the near-term play appears to be about managing threat and recognizing undervalued altcoin alternatives.
Bitcoin: Momentum stays robust, however overheating warnings are up!
Bitcoin’s day by day chart confirmed bullish momentum, however warning could also be warranted within the brief time period. The RSI crossed into overbought territory at 72.79, at press time, suggesting that BTC could also be nearing exhaustion after its latest surge.
Supply: TradingView
On the similar time, the MACD indicator confirmed robust upward momentum, with a widening hole between the MACD and sign traces; an indication of development continuation.
Whereas the broader development stays optimistic, a brief pullback or sideways section is more and more doubtless as merchants digest latest features.
