Bitcoin Price Analysis: BTC/USD retreats after jumping to 33-month highs above $14,000
- Bitcoin surged to its highest level since January 2018 above $14,000.
- Daily RSI for BTC/USD remains in the overbought area.
- Additional gains are likely if Bitcoin stays above $13,300.
Following Wednesday's correction, Bitcoin (BTC/USD) posted gains for two straight days and preserves its bullish momentum into the weekend to touch its best level since January 2018 at $14,090. However, this move seems to have triggered profit-taking on the last day of the month and the BTC/USD was last seen trading at $13,830, where it was up nearly 2% on a daily basis.
Bitcoin technical outlook
On the daily chart, the Relative Strength Index (RSI) is approaching 80 in the overbought area. Earlier in the week, Bitcoin fell sharply when the daily RSI hit 84 and a similar market reaction could be expected. On the downside, the lower limit of the linear regression channel coming from early October could be seen as the first support at $13,600. Below that level, the Fibonacci 23.6% retracement of the same uptrend is the next line of defence at $13,300. Unless BTC/USD make a daily close below that level, buyers are likely to remain in control of the price.
The initial resistance, on the other hand, is seen at $14,090 (daily/33-month high). Above that level, $14,500 (January 13, 2018, high) and $15,000 could be targeted.
BTC/USD daily chart
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
