Bitcoin Price Analysis: Price trending in a channel as BTC/USD overbought level nears 2017 peak

BTC/USD had a bearish opening this Thursday as the price went slightly from $5,320 to $5,310. The relative strength index (RSI) indicator has reached overbought levels similar to the 2017 peak. This may indicate that the price may drop before another rally pushes the price up to new levels. This is in line with Crypto Thies’s predictions, as reported earlier by FX Street. He had earlier tweeted that BTC/USD may go down to $4,700 before shooting up to as much as $8,400:

“-Supports @ $4.7k & $4.3k
-Resistances @ $5.5k, $5.7k, $6.6k,$8.4k

-Confident we touch at least $4.7k again but I see an attempt upwards first

-1wk BB Sqz + 2wk candle breaking above midBB suggests macro move to upper BB on 2wk @ $8.4k due in coming weeks"

BTC/USD Daily Chart

• The BTC/USD price is currently trending in a channel before a potential breakout.
• Immediate support lies at $5,150, while immediate resistance is at $5,500.
• The market is trending above both the 50-day simple moving average (SMA 50) and SMA 200.

• The RSI indicator had gone up to 94 before going down to 81.
• The last time the RSI indicator reached 94 was back in 2017 during the 2017 peak.
• Immediately after it reached 94 in 2017, the price spiked up before it crashed down.