Bitcoin price chart analysis: Moves into overbought territory
Bitcoin price chart analysis shows that the cryptocurrency is still extremely overbought. Negative price divergence is also present until the $7,000 level.
Bitcoin has staged a huge pullback over the week, after the number one cryptocurrency briefly traded above the psychological $10,000 level.
Bitcoin price chart analysis shows that a correction back towards the $7,000 level could take place if bulls fail to anchor price above the $9,400 level.
Bitcoin medium-term price trend
Bitcoin briefly rallied above the $10,000 level last week after buyers broke past the technically important $9,400 resistance level.
Data from the futures market also showed that institutional money continued to enter the market, ahead of the halving.
0'>Bitcoin price technical analysis shows that the cryptocurrency has staged a major pullback after it reached its most overbought level in nearly one-year.
The daily time shows that the Relative Strength Index reached its most overbought reading since June 2019 last year.
Trendline analysis also shows that a false technical breakout occurred once the $9,400 level was overcome.
Key resistance above the $9,000 level is found at the $9,400 and $9,700 levels, while key support is located at the $7,800 and $7,400 levels.
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Bitcoin short-term price trend
0'>Bitcoin price technical analysis shows that short-term bulls are in control while the price trades above the psychological $7,600 level.
Lower time frame analysis shows that the recent rally has created bearish price divergence on the stochastic indicator.
The stochastic indicator on the four-hour time frame shows clear price divergence extending down towards the $7,000 support area.
The MACD and RSI indicators also show that negative price divergence has now been reversed, around the $8,100 level.
Failure to anchor price above the $8,000 level could cause the existing bearish price divergence to unravel this week.
Bitcoin technical summary
Bitcoin technical analysis indicates that the cryptocurrency could correct down towards the $7,000 level as negative price divergence reverses.
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