Bitcoin Price Analysis: BTC/USD retreats after jumping to 33-month highs above $14,000
|- Bitcoin surged to its highest level since January 2018 above $14,000.
- Daily RSI for BTC/USD remains in the overbought area.
- Additional gains are likely if Bitcoin stays above $13,300.
Following Wednesday's correction, Bitcoin (BTC/USD) posted gains for two straight days and preserves its bullish momentum into the weekend to touch its best level since January 2018 at $14,090. However, this move seems to have triggered profit-taking on the last day of the month and the BTC/USD was last seen trading at $13,830, where it was up nearly 2% on a daily basis.
Bitcoin technical outlook
On the daily chart, the Relative Strength Index (RSI) is approaching 80 in the overbought area. Earlier in the week, Bitcoin fell sharply when the daily RSI hit 84 and a similar market reaction could be expected. On the downside, the lower limit of the linear regression channel coming from early October could be seen as the first support at $13,600. Below that level, the Fibonacci 23.6% retracement of the same uptrend is the next line of defence at $13,300. Unless BTC/USD make a daily close below that level, buyers are likely to remain in control of the price.
The initial resistance, on the other hand, is seen at $14,090 (daily/33-month high). Above that level, $14,500 (January 13, 2018, high) and $15,000 could be targeted.
BTC/USD daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.