Bitcoin is freaking out of control. We saw a new ATH today that has topped almost $1,000 over the previous ATH which was held less than 24-hours ago!
During that same time period as well, bitcoin has managed to stay in overbought territory for the duration. Because this is a blue sky breakout, these indicators are less meaningful since there's no resistance levels.
The momentum is so crazy. This is definitely proof that people buy into hype. There has been no fundamental change, and market factors remain the same. We will definitely see an increase in search activity as people look to research bitcoin and this breakout.
Supports are at $5,475, $5,395, and $5,200 with $5,000 psychological on the low.
We will definitely be seeing the bears come in here and take over for at least come consolidating. The market seems to be all market buy orders now which means price increase with the volume sustained. These factors lead me to think that there's still more upside and we'll see a test of $6,000 in the short future.
WARNING: These big moves always come with downside as well, so don't think that there won't be a pullback at some point. The daily RSI is now over 80 with 4-hr RSI in the 90's! This rarely happens and always leads to a pullback of substantial magnitude.
Stay safe, have fun, and happy trading!