We have broken the major resistance (blue line). This is a major breakthrough and as long as we stay above it for a couple of days we will be fine. The RSI (relative strength index) is above 70 now, we didn't go above 70 RSI for a couple of months now. The last time we went above this RSI level is December (orange circles in image). 70+ RSI could be a bad thing because it tells us that bitcoin is overbought, indicating that a correction is needed.
For now we think bitcoin will go sideways and cool off (let the RSI go back beneath 70). Once this RSI is beneath 70 (maybe 60) we will see a upwards movement towards 8300. To be sure watch the 7900 mark carefully, if we break that downwards we could see a correction so set you stop loss wisely.
For now we think bitcoin will go sideways and cool off (let the RSI go back beneath 70). Once this RSI is beneath 70 (maybe 60) we will see a upwards movement towards 8300. To be sure watch the 7900 mark carefully, if we break that downwards we could see a correction so set you stop loss wisely.