BTC-“Overheated Conditions”

1-Day Analysis:

Big Picture: Breaking out of the falling wedge pattern has resulted in a remarkable jump for Bitcoin, with the price increasing by more than 12% in only a few sessions. The momentum is extremely aggressive, however lower-time frame oscillating indicators are overstressed and are in desperate need of a consolidation period. Going forward, price could potentially continue to slowly head further higher towards the resistances above, however, now on strength partial profit-taking remains advised.

On the Upside a significant price increase occurred when price broke through the 28,800 mark, and more specifically the 29,800 level. Furthermore, the session finished on a positive note, displaying persistence and strength. Nevertheless, the initial resistance for the day is seen at 30,575 level. Surpassing this will likely push the price up towards the 31,790 to 32,650 levels. Partial profit-taking is encouraged at this point, as price may attempt to cool off after testing these resistances.

On the Downside The psychological level of 30,000 is expected to aid in the establishment of a support level. Below that threshold, there would be significant support from 29,800 level for the session. Maintaining this supporting range would keep the bullish trend going and prevent any possibility of a cool-down scenario. Furthermore, testing these supports would generate fresh interest from dip buyers. However, below 29,800, the session’s next supports would be at 29,200, followed by 28,800.