Bitcoin became overbougth and aproaches to the upper trendline (red line) at around $70 000. The cryptocurrency may have enough momentum to make a new ATH soon around $70 000, it is likely to happen a correction after the parabolic movement we saw in the last weeks. The low point should be around the previous ATH, at 64.500 - $60 000 zone.
RSI Indicator is in Overbought zone
The Bitcoin's RSI Indicator is in the overbought section which indicates an upcoming slowdown which is favorable for a healthy correction. To maintain the parabolic movement it is likely to see a maximum -10-15% correction which helps gaining more power for creating a new ATH around $80 000. There the RSI will become again overbought, so there is likely to have an another correction which leads to our target price at $100 000. A healthy bull trend is made up of ralies, new ath and corrections, creating peaks and lows. In the best case scenarios the new lows are higher then previous lows. This happened on Bitcoin in the last few weeks.
Stock-to-Flow Model
According to the famous Stock-to-Flow model, it is vital to get a new high in the next months, otherwise the model will fail, which is unlikely seeing the historical accuracy of the theory.
Just an opinion
Well, this is just my point of view, is not a financial advice. I wanted to share my thougths with the crypto community. Please leave your opinion here, I would like to know how others are viewing the market and the upcoming weeks.
Thanks for your contribution.
RSI Indicator is in Overbought zone
The Bitcoin's RSI Indicator is in the overbought section which indicates an upcoming slowdown which is favorable for a healthy correction. To maintain the parabolic movement it is likely to see a maximum -10-15% correction which helps gaining more power for creating a new ATH around $80 000. There the RSI will become again overbought, so there is likely to have an another correction which leads to our target price at $100 000. A healthy bull trend is made up of ralies, new ath and corrections, creating peaks and lows. In the best case scenarios the new lows are higher then previous lows. This happened on Bitcoin in the last few weeks.
Stock-to-Flow Model
According to the famous Stock-to-Flow model, it is vital to get a new high in the next months, otherwise the model will fail, which is unlikely seeing the historical accuracy of the theory.
Just an opinion
Well, this is just my point of view, is not a financial advice. I wanted to share my thougths with the crypto community. Please leave your opinion here, I would like to know how others are viewing the market and the upcoming weeks.
Thanks for your contribution.