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Bitcoin price could dip before testing all-time highs

  • Bitcoin price broke above $60,000 on Friday and saw bulls consolidating their positions firmly above.
  • BTC price, however, is under selling pressure as the RSI is in oversold territory. 
  • Expect BTC price to test $60,000 on its support, which would push the RSI back below 70, and offer entry for new buyers for the next leg up to $65,087.

Bitcoin price (BTC) has been on a tear these past few days, with bulls breaking $60,000. To keep the uptrend intact, buyers will want to wait for the daily Relative Strength Index (RSI) to dip back below 70. This dip below 70 in the RSI would coincide with a test of $60,000 and would offer new buyers a good entry for the next phase in the uptrend toward $65,087 or new all-time highs.

BTC bulls need to let the RSI cool down first before expecting a new all-time high

Bitcoin price popped above $60,000 on Friday with plenty of media attention. Bulls have been able to consolidate quite firmly above that level with a few daily closes. Even the start of the new trading week opened higher than the low of this weekend.

There are issues though for BTC price to hit new all-time highs this week, as the daily RSI is above 70. This may make some buyers lock in some profit along the way, in case price action starts to fade in the wake of $65,087. New buyers should need to wait for a slight return to $60,000, a retest of that level which falls in line with the tops from May 3 and May 10. This minor correction would cool down the RSI and push it back below 70, making it for buyers to reenter.

BTC/USD daily chart


BTC/USD daily chart

Expect the retest of $60,000, a rebound higher with the long-awaited retest of new all-time highs. Do not expect that markets will let this go unnoticed, with much media attention and headlines on financial and mainstream media. This element will act as a favorable tailwind and add enough intraday traders to make the final push above $65,087.

In case buyers are unable to hold $60,000 on the retest, expect to see some more profit-taking as investors will want to lock in more profit in the fact that new all-time highs might not be for this week. Expect a retest to the lower level at $55,619.




 

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

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