Red line- horizontal resistance
yellow rectangle- overbought RSI
In our previous analysis on Bitcoin we warned bulls that price action suggested that a pull back was justified. Yesterday Bitcoin was trading around $21,500 while today price is at $20,850 with already a low at $20,300. Bitcoin has reached a key horizontal resistance level. The RSI has reached record overbought levels and the short-term chart suggested at least a minor pull back was expected. Price is showing rejection signs at the horizontal resistance. A pull back towards $18,000 is not out of the question. Bulls want to see price form higher lows and higher highs afterwards. Patience is needed in order to clarify if Bitcoin is starting a new up trend.
