Bitcoin (BTC) continues to lead the crypto bull cycle after the price of cryptocurrencies surged overnight as investors remained optimistic about growing demand from institutional investors. Despite speculation of overbought, the unabated vigor of BTC/USD to lift past $40K stays intact. After rising from $36,352 to $39,798, Bitcoin’s price is poised to hit new highs for what appears to be an unstoppable rally. BTC’s market cap is currently $714.24 billion, of which $81.56 billion has been traded in the last 24 hours. The benchmark cryptocurrency now denies the very concept of overbought. Since capital inflows to Bitcoin show no signs of slowing down, another reason for the steady rise in Bitcoin prices is the lack of free circulation on exchanges and OTC tables. At the time of writing, BTC is up 11% and is trading around $39,585. The overall crypto market is showing gravity-defying power as it surpasses the $1T mark, led by Bitcoin. BTC remains the market leader with a market cap of $714 billion, followed by ETH with a market cap of $139 billion. Tether, XRP, and LTC round out the top five.
*After rising from $36,352 to $39,798, Bitcoin’s price is poised to hit new highs for what appears to be an unstoppable rally
*Despite speculation of overbought, the unabated vigor of BTC/USD to lift past $40K stays intact
*The overall crypto market is showing gravity-defying power as it surpasses the $1T mark, led by Bitcoin
Resistance Levels: $45,000, $42,000, $40,000
Support Levels: $35,000, $33,000, $30,000
BTC/USD Monthly Chart: Bullish
BTC/USD Monthly Chart
The recent rally places periodic technical indicators to the task, in particular the Relative Strength Index (RSI), which evaluates the market conditions of overbought and oversold. In the monthly timeframe, the $40,000 level coincides with the ascending trendline resistance and is rated an overbought zone. An overbought situation normally implies that an asset trades beyond its actual market value. It may therefore be overpriced; the condition is therefore accompanied by a reversal of price action.
The chart above indicates that as previous resistance levels pass into support areas, even the big bull markets are rallying and becoming extremely overbought. Historically defined overbought levels such as $20,000, $30,000, $35,000 are therefore now emerging as support zones where dips can be bought. The breakout of the horizontal levels on the chart, meanwhile, reveals the precise midpoints where the parabolic rally unfolds.
BTC/USD Daily Chart: Bullish
BTC/USD Daily Chart
Bitcoin looks increasingly optimistic in the short term as the number one cryptocurrency continues to hold above the technically important $35,000 level. The technical analysis highlights the $40,000 and $42,000 levels as a possible daily target for the BTC/USD bulls. Analysis of the lower time frames shows that the $38,000 level is the strongest form of upcoming technical support.
On the other hand, BTC bearish traders may try to dampen the recent rally in anticipation of further weakness. The BTC/USD pair is bullish only when trading above the $35,000 level, with key resistance at the $40,000 and $42,000 levels. If the BTC/USD pair is trading below the $35,000 level, sellers can test the $33,000 and $32,000 levels.
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