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Bitcoin [BTC] Price Analysis: Breakout Impends Amid Extremely Overbought Conditions

bitcoin-btc-price-analysis-breakout-impends-amid-extremely-overbought-conditions
  • BTC/USD is trading at $4,952 but all eyes are set on reclaiming the support at $5,000.
  • Bitcoin’s medium-term and long-term outlook remain strongly positive.

BTC/USD recently embarked on an incredible journey of breaking barriers above towards $5,400. The 4-hour chart shows the uptrend was supported slightly above $4,000 by both 50 SMA and the 100 SMA. On breaking above $23.6% Fib retracement level with the last upswing at $5,338.27 and a swing low of $3,865.24, BTC/USD sprung up an engulfing candlestick. A struggle encountered at the 61.8% Fibonacci level allowed the bulls to form an uptrend and push for correction above $5,000 and eventually hit highs around $5,338.27.

Chart Source: TradingView

The retracement from the weekly high has been supported by the 61.8% Fib retracement level (key support) slightly below $4,800. At present, there is a growing bullish momentum above the short-term trendline. BTC/USD is trading at $4,952 but all eyes are set on reclaiming the support at $5,000. The short-term bullish bias is also supported by the RSI 4-hour. The indicator has reversed the slope upwards from 59.23 to the current 68.58. It is only a matter of time before it breaches its way into the overbought in turn giving the buyers confidence to increase their positions. Moreover, another bullish indicator is the widening gap between the 50 SMA and the 100 SMA.

Also Read: Crypto Market Review: Bitcoin Adds $17.5 Billion Dollars As Bull Run Soothes on Day 2

BTC/USD Weekly Chart Outlook

BTC Price
Chart Source: TradingView

In spite of the correction, Bitcoin’s medium-term and long-term outlook remain strongly positive. The weekly range shows the price bullish above the descending trendline resistance. The next target has been set on $6,000 but first, the buyers must clear the resistance at the 50 SMA. In addition to that, Bitcoin is still supported within a core range between $3,189.94 and $6,000. The RSI 1-week is also trending steadily upwards to showing that the trending is favoring the buyers. Bitcoin is likely to regain its position above $5,000 and correct higher towards the weekly high at $5,338.27.

Key Technical Levels

Support 1: 61.8% Fib level 4-hour

Support 2: $4,700

Trend: Short-Term-Bullish, Long-Term- Bullish

Resistance 1: $,5000

Resistance 2: $5,200

Resistance 3: $5,343.27

50 SMA 4-hour: $4,400

100 SMA 4-hour: $4,200

50 SMA weekly: 5,703.73

100 SMA weekly: $6,338.29

RSI (21) weekly: 50.00

RSI (21) 4-hour: 68.58

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