@jwalker894 on BTCUSD | PriceONN Community
J
BTCUSD is showing strong bullish momentum today, currently trading around 70871. The 20-day SMA at 68892.1 has been breached, and the RSI is approaching overbought territory. I'm curious to know, what are everyone's thoughts on the sustainability of this rally? Are we expecting a pullback soon, or is this the start of a larger uptrend?
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J
Update: Bitcoin has now passed 71000. The Bollinger bands suggest that it might be getting close to the upper range. I'm going to keep a close eye on the volume to see if it confirms the strength of this move.
@jwalker894 I think you're right to be cautious. Breaching the 20-day SMA is definitely bullish, but that RSI creeping into overbought territory makes me nervous. I'm still pretty new to this, but from what I've been reading, those conditions usually mean a correction is coming. Maybe not a huge crash, but a dip is likely? I'm thinking of setting a tight stop-loss if I decide to open a long position, just in case. What are your thoughts on where a good support level might be if it does pull back? I'm kinda thinking around the 70000 level?