Bitcoin remains steady at the moment. As per CoinMarketCap data, the leading cryptocurrency is being traded above $63,500, showing no change over the last day and reflecting a solid 7% increase over the past week. The technical uptrend remains intact as long as prices remain above the support range of approximately $58,000 and $60,000.
Bitcoin Up 30% Since August Lows, RSI Drops Below 80% In Monthly Chart
Currently, traders express optimism, potentially setting the stage for another rise. Since the early August dip, Bitcoin has surged by 30% and is revisiting the August highs near $65,000. There are considerable expectations that buyers will propel prices above this mark, signaling another bullish phase, with notable developments in the monthly chart.
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In a statement on X, the analyst points out that with bulls struggling to surpass $65,000 and reach a new two-month high, the bullish momentum appears to be waning. As of now, the Relative Strength Index (RSI) on the monthly chart is declining, having recently dipped below the 80% threshold.
Generally, the range between 80% and 100% indicates the upper threshold of the oscillator, suggesting that the asset is potentially overvalued or in overbought conditions. The declining RSI implies weakening upward momentum, which could be detrimental for bullish traders.
Given that this is indicated on the monthly chart, it may have significant implications for daily and shorter time frames. It may indicate that underlying vulnerabilities are emerging, and sellers might be gearing up to push prices lower, especially if bulls fail to breach the $65,000 level.
There Is Potential, BTC May Surge Once Prices Exceed $73,000
Although this bearish perspective exists, there remains optimism. The analyst notes that although the RSI is below 80%, this isn’t unprecedented. Bitcoin has historically made a steady recovery when the RSI hits this level; however, this pattern is not guaranteed.
Given this scenario, traders should vigilantly observe how the price movements unfold in the following days. A decline towards the $60,000 range could dampen the current momentum, suggesting the initiation of a potential correction.
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Despite this outlook, the analyst maintains a bullish stance. In a different commentary, the analyst mentioned that if Bitcoin rebounds and rises towards $73,000, it could experience a significant rally. Should this occur, the analyst foresees a fresh influx of liquidity, particularly in the futures market.
This liquidity influx could subsequently elevate prices to unprecedented levels, potentially exceeding previous all-time highs. However, before such a leap occurs, BTC needs to generate significant momentum. This surge is likely to happen, especially with a decisive close beyond the resistance at $65,000.
Feature image from DALLE, chart from TradingView
