Bitcoin is firm at press time. According to CoinMarketCap data, the world’s most valuable coin is changing hands above $63,500, steady on the last day and up a decent 7% over the previous week of trading. Technically, the uptrend remains as long as prices stay above the support zone at around $58,000 and $60,000.
Bitcoin Up 30% From August Lows, RSI Dips Below 80% Level In The Monthly Chart
At press time, traders are upbeat and optimistic, which could form the base of another leg up. So far, since the dip in early August, Bitcoin is up 30% and retesting August highs at around $65,000. However, there are high expectations that buyers will push prices above this level, marking another phase for confident bulls, a development in the monthly chart is worth noting.
Taking to X, the analyst notes that as bulls struggle to break above $65,000 and print a fresh 2-month high, the upside momentum seems to be fading. At press time, the Relative Strength Index (RSI) in the monthly chart is falling, recently breaking below the 80%.
Typically, the zone between 80% and 100% marks the upper limit of the oscillator, denoting that the coin is overvalued or in the overbought territory. With the RSI falling, it can be interpreted that the upside momentum is down, which is a net negative for bulls.
Since this is printed out in the monthly chart, it could have serious consequences in the daily and lower time frames. It can hint that cracks are forming, and sellers may be preparing to push lower, especially if bulls fail to break above $65,000.
There Is Hope, BTC Will Likely Spike Once Prices Race Above $73,000
Bearish as this may be, there is hope. The analyst observes that though the RSI is below the 80% mark, this is not the first time. On multiple occasions, Bitcoin prices recover steadily when the RSI falls to this level. Nonetheless, this doesn’t happen all the time.
As this is a concern, traders should closely monitor how price action pans out in the coming days. A drop toward the $60,000 mark will pour cold water into the current momentum, signaling the start of a possible correction.
Even with this outlook, the analyst is bullish. In a separate post, the analyst said if Bitcoin shakes off weakness and climbs towards $73,000, the coin may rally strongly. When this happens, the analyst expects a new influx of fresh liquidity, especially in the futures market.
The inflow, in turn, could drive prices to new levels, perhaps even above all-time highs. All the same, before this happens, BTC needs to gather momentum. This surge will happen, especially if there is a decisive close above the $65,000 resistance line.
Feature image from DALLE, chart from TradingView
Source