BTC/USD outlook: Bitcoin hits the highest in more than two years, overbought studies warn of correction

BTC/USD

Bitcoin extends steep ascend, benefiting from strong inflows to new US listed ETF, with over one trillion investment in bitcoin registered on Wednesday.

The price hit the highest in over two years in early Thursday’s trading, after 4.3% advance previous day closed well above psychological 50000 barrier, for the first time since mid-December 2021.

Gains in first two weeks of February already surpassed 23%, on track to register the second strong weekly advance and also heading towards the biggest monthly gains since October 2021.

Bulls hit new high at 52563 and focus next target at 53085 (Fibo 138.2% projection of the upleg from 38501), with stronger bullish acceleration to expose barriers at 55576 (Fibo 161.8% projection) and 56291 (Fibo 76.4% retracement of 68911/15434 downtrend).

Caution on strongly overbought conditions on daily chart, which may slow bulls for consolidation.

Broken psychological 50000 level and former top at 49054 (Jan 11) turned to solid supports which should ideally contain dips and guard rising daily Tenkan-sen (47658).

Res: 53085; 54330; 55000; 55576.
Sup: 51640; 50400; 50000; 49054.