BTC/USD outlook: Bitcoin express continues to travel at a high speed

BTC/USD

Bitcoin keeps firm tone and trading just under new highest in over three years on Thursday, as steep rally extends into fourth straight day.

Bitcoin was a top market performer in past few sessions, advancing about 36% since Monday, after large purchases by big names strongly fueled demand.

Fresh bullish signal was generated on Wednesday’s close above psychological 60000 barrier, with strength of the latest rally presented by the time required to rise from one to the other round figure.

It took only 2.5 weeks to rise from 50000 to 60000, compared to 11-week rally from 40000 to 50000, with nearly 50% advance in February, marking the record monthly gain.

However, we started to see initial signs that bulls may soon start running out of steam, as studies on all larger timeframes are strongly overbought and many market speculators may decide to collect profits after a massive rally this week.

Wednesday’s bullish daily candle with long upper shadow (shape not seen for quite some time) signals that sellers started to appear, although subsequent advance on Thursday partially offsets the signal, but initial warning should not be completely ignored.

Applying one of key market rules that whatever goes up, will at one point turn down, we can assume that at least mild correction should be expected in the near future, before final attempt to retest coin’s record high at 68911 (November 2021).

Res: 64227; 64821; 66907; 68911.
Sup: 60558; 60000; 57350; 55728.