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 alerts and overbought indicators, a short-term pullback or pause now appears possible.
Bitcoin [BTC] hit an ATH of $123,000 after weeks of regular beneficial properties. However indicators are beginning to present that the rally might decelerate, with a brief pause or pullback possible earlier than the following huge 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 additionally pushed the market decisively out of a heavy consolidation vary between $100k and $110k.
On-chain information from Glassnode’s price foundation distribution heatmap exhibits that the $93k-$97k and $104k-$110k zones acted as dense accumulation pockets throughout 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 doubtlessly 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.
Quick-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 pattern is now reversing – a basic marker of an area high.
Alphractal CEO Joao Wedson notes this will likely herald a short-term consolidation interval, whilst altcoins achieve momentum.
Supply: Alphractal
Whereas the medium-term bullish outlook stays intact, the near-term play appears to be about managing danger and recognizing undervalued altcoin alternatives.
Bitcoin: Momentum stays robust, however overheating warnings are up!
Bitcoin’s every 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 identical time, the MACD indicator confirmed robust upward momentum, with a widening hole between the MACD and sign strains; an indication of pattern continuation.
Whereas the broader pattern stays optimistic, a brief pullback or sideways section is more and more possible as merchants digest latest beneficial properties.
