BTC/USD witnesses pullback from a year’s high, $8400 back in the spotlight
- Broad greenback weakness, thin trading volume, and break of technical resistance propelled prices.
- Overbought RSI questions recent rally amid lack of fresh catalysts.
Having risen to the highest since mid-May 2018, the BTC/USD pair failed to hold previous gains as it trades near $8,770 during early Monday.
The quote’s earlier rally could be because of the weekend’s usually thin trading volume joining across the board weakness of the US Dollar (USD).
A technical breakout above $8,400, comprising multiple tops during the current month, might also be considered as a reason for the surge to $8,945.
It is also speculated that tweets from Binance chief executive Changpeng Zhao, indicating a break of $8,000, as well played its role in fuelling the quote.
With the global traders coming back to their desks, except the US and the UK, prices may have witnessed a pullback in search of additional clues.
In doing so, political plays concerning the US trade relations with China and Japan will gain higher attention amid no major data/events scheduled for release.
Technical Analysis
$8,400 support-turned-resistance regains market attention amid overbought levels of 14-day relative strength index (RSI), a break of which could please sellers with 10-day long ascending trend-line near $8,000 round-figure. Alternatively, an upside clearance of recent high might not refrain from crossing $9,000 psychological magnet whereas $9,180, $8,500 and May 2018 top around $9,950 could flash on the bulls’ radar.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
