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Technical Analysis

Bitcoin’s Bullish Surge Eyes Extended Rally to Six Figures: Technical Analysis

Bitcoin Futures continue to fly as the cryptocurrency has secured a position among the top assets in the world.

The recent move above $69,435 has traders considering the possibility of an extended rally, potentially reaching the Fibonacci extension level of $102,975, which may be the next cycle high.

The Relative Strength Index on the daily timeframe is in overbought territory with a reading over 77. While traditionally a sign of potential pullback, in the context of a strong bull market, it can also indicate a high level of buyer enthusiasm and the potential for further price pumps.

weekly chart bitcoin wiht 50 and 300 sma and rsi

Key Levels to Watch:
The price has surged past the previous all-time high, now turning it into a support level at $69,360. Traders should monitor the $73,855 level, as it’s the current high point of the breakout. If the bullish momentum continues, the bulls will aim for the Fibonacci extension level at $102,975.

Potential Trades:
For those seeking to capitalize on this trend, a potential strategy could be to look for retracement entries at key Fibonacci levels of $57,720 or $48,585, but this could be very unlikely at this point due to the strength of the uptrend. Keep in mind that this approach may leave you without a trade to take, which is fine as long as you are swing trading. Other traders will come.

Overall Rating:
The market sentiment is decisively bullish. The recent breakthrough and the corresponding volume suggest a strong conviction among buyers. There are no bearish signals on the chart, and any taken now would be fighting the market heavily. With that said, be cautious about chasing the market higher.