Bitcoin hits record highs on ETF approval talk, RSI in overbought region

Omkar Godbole FXStreet Contributor

Bitcoin hit a record high of $1193.92 on speculation that the first Bitcoin exchange-traded fund (ETF) is set to receive approval from the US financial regulator.

As per Reuters report, three ETFs that track the value of Bitcoin have been filed with the U.S. Securities and Exchange Commission for approval.

The reports are doing the rounds that even the People’s Bank of China (PBOC) is set to issue its own virtual currency. As of now, the Bitcoin isn’t responding to the PBOC news.

The BTC/USD was last seen trading around $1182.78 levels.

Technicals - overbought RSI with price at record highs

This is a textbook case - overbought RSI with price at record highs. A pullback could be seen, possibly to the 10-DMA level of $1091. 76 levels. Both 5-DMA and 10-DMA are sloping upwards, so, the pullback could be short lived.

Take note of the fact that the RSI is overbought on all three major time frames - daily, weekly and monthly.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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