Yesterday, the BTC pumbed up to $ 7,500 in several hours, many speculated that due to rumors of an increase in a Bitcoin ETF fund that created an overbought situation in the market, the RSI hit an all-time high on the 4H chart for BTC / USD. However, this may not last long.
FOMO
The rise in prices is considered by many to be a sign of reversal and FOMO status. Although, it is true that the BTC adjustment period has been long enough, it is still too early to assume that Bitcoin has entered a new bullish round.
According to analysts, this rally touched the resistance of $ 7,500 and bounced back. And since a lot of technical analysis has shown that Bitcoin is in a downward trend, this rebound can bring Bitcoin to the bottom again.
Recent rallies also show a $ 7,500 key resistance, which means the price will only retest once a day before dropping to a lower support level of $ 5,800. This is the deadliest moment, because if the $ 5,800 level does not hold, the bitcoin will drop to $ 5,400 and retest multiple times 5,800.
*Predicted in the next few days
Currently, Bitcoin is still overbought on the 4h chart, RSI just beyond the EMA suggests that the fall in prices will occur in the near future at $ 6,800.
In fact, although many believe that recent price increases are related to Bitcoin ETFs, it is important to keep in mind that Bitcoin prices depend solely on liquidity on the exchange. The pumb price makes people think that something is happening and stick to FOMO.
Thus, the high possibility in the short term is bitcoin continues to go sideways and falling, but the investors who believe in the uptrend of the market will tend to accumulate BTCs and build up momentum for the next bull market.