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bitcoin saw an explosive rise yesterday, with the bulls taking the price to a new all-time high (gain) of $89,980. This relentless bullish trend highlights the growing optimism among investors as bitcoin continues to break new ground.
Renowned trader and analyst Cheds recently shared a compelling technical view, noting that bitcoin's weekly Relative Strength Index (RSI) is approaching the “overbought” zone, historically a very bullish signal for btc. Entering this zone could indicate increased demand and momentum, suggesting greater upside potential for bitcoin in the near term.
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The next few days will be critical as investors anticipate a possible pullback to open new positions at lower levels. However, the current price action remains bullish and shows few signs of weakness.
If the price holds up, it could generate even greater buying interest, extending bitcoin's bullish momentum. Cheds analysis underlines btc's strong technical setup, with the RSI approaching a point that could attract more bullish attention. Investors will be watching closely, as any sustained move in this high momentum phase may set the stage for bitcoin's next big rally.
bitcoin shows strength
bitcoin is up more than 32% in less than a week, with quick and aggressive moves to new highs reflecting strong market sentiment. This euphoria usually precedes a correction, but recent data indicates that bitcoin could maintain this upward momentum.
Top Cheds Trader and Analyst x.com/BigCheds/status/1856056514253074938″ target=”_blank” rel=”nofollow”>recently shared a technical analysis on xhighlighting that bitcoin's weekly Relative Strength Index (RSI) is approaching the “power zone”, known as overbought territory. Historically, this zone has signaled powerful bullish phases for btc. The last time bitcoin's RSI hit similar levels, the price rose from around $40,000 to $70,000, suggesting another substantial rally could be on the horizon.
As bitcoin enters this new bullish phase, a continuation of the uptrend seems likely, but it may not be a straightforward rise. Even in strong bull markets, btc usually requires periodic pullbacks to consolidate and gain strength for further gains.
A healthy pullback would provide the necessary support levels and allow btc to “refuel” before another bullish push. This pullback is particularly important to avoid excessive conditions that could lead to a more severe correction.
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While the current bullish momentum is pointing towards higher levels, traders should anticipate some fluctuations, which are part of a sustainable uptrend. bitcoin's ability to maintain key support levels during any potential pullback will be crucial to maintaining the overall bullish structure.
Bullish Price Action: Key Levels to Watch
bitcoin is trading at $88,000 after two days of unexpected price appreciation, defying analyst expectations of a pause around $77,000 and a possible pullback to the previous all-time high of $73,800.
Instead, bitcoin price has continued its upward momentum, bringing it closer to the important psychological level of $90,000. Many investors consider this level to be a key supply zone where profit taking could emerge.
Despite the rapid rise, market sentiment remains very optimistic and the price structure suggests that bitcoin is still aiming for the long-awaited $100,000 milestone. The current price action reflects a strong bullish trend, but a pullback towards the $77,000 level could be a healthy move, allowing btc to establish a solid demand base. Such a pullback would offer a consolidation phase, which is typical before another big advance in a sustained rally.
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Meanwhile, bitcoin's continued price action above recent highs is boosting investor confidence and keeping the overall outlook bullish as btc appears well-positioned for further gains.
Featured image of Dall-E, TradingView chart
