Skip to main content

Bitcoin consolidating so far today as technicals indicate it is overbought

I cannot say for sure where the 14 Day RSI (Relative Strength Index) was on Bitcoin yesterday, when it surged to above 64k, but I would hazard a guess it was close to, or above 90. For your guide, readings above 80 indicate an instrument is heavily overbought. Please also remember the RSI cannot go above 100 in the same way it cannot fall below zero. So, as BTC got whacked back yesterday afternoon, that RSI would have dropped back to. However, as I look at it right now I see it is trading at around 88. So, the lead coin is clearly still susceptible to another correction, but that does not mean it is necessarily imminent, or it will be sharp in terms of any downside move. That is because the RSI can be corrected by a good deal of price consolidation within a defined range- trading sideways to put that in plain english. As far as resistance levels of note now, we have the high seen yesterday and then the all time high, at 68,991. Immediate supports are in place at 58,875 and somewhere around 57k. BTC is currently trading at 62,495
 

Ready to Get Started?

Start here. Join 2.9M Libertex users around the world!