Too Much Bitcoin Euphoria?
Traders who have already been burnt and learnt the experience know not to get too much carried away by the general euphoria in the market especially when its a bit too much. Agreed that BTC has started a bullish trend and the sentiment is quite positive everywhere, but this is where we have to be careful. Now seeing the price action where BTC jumped 1000 points in a day, even though its not unusual, but all such rallies are always followed by eventual market corrections.
So lets look at the technical outlook of BTC, at the time of writing this the price has bounced from the lows of 6800 and has recovered to 7100 which still means that the investors are still lapping on to Bitcoin. The RSI Indicator is clearly in the overbought zone but this is not new to Bitcoin as historically we have had such scenarios. The MACD chart gives a bit more idea that the momentum is waning and there is a probability that Bitcoin might try to break the 7400 resistance level tomorrow before it starts of with a correction.
So the trade call would still be to partially book profits and then see if there is a new high that is being tested tomorrow where you can book some more profit.
Please note that the trade calls are the authors opinions based on technical analysis and hence readers are requested to do their own in depth study before investing.
So lets look at the technical outlook of BTC, at the time of writing this the price has bounced from the lows of 6800 and has recovered to 7100 which still means that the investors are still lapping on to Bitcoin. The RSI Indicator is clearly in the overbought zone but this is not new to Bitcoin as historically we have had such scenarios. The MACD chart gives a bit more idea that the momentum is waning and there is a probability that Bitcoin might try to break the 7400 resistance level tomorrow before it starts of with a correction.
So the trade call would still be to partially book profits and then see if there is a new high that is being tested tomorrow where you can book some more profit.
Please note that the trade calls are the authors opinions based on technical analysis and hence readers are requested to do their own in depth study before investing.
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