Wednesday, June 26, 2019
No resistance seems to be able to stop this massive surge. The parabolic advance of the price even reached $12'940 this morning before a small correction.
Actual support/resistance: $12'000/$13'000
The speed at which Bitcoin keeps increasing has started more and more talks about a pullback or even a Bitcoin bubble. Indeed such a fast growth may seem unhealthy. High volatility might scare off new investors, considering it too speculative. However, there are still major institutions planning to build a framework around cryptocurrencies potentially attracting new investors. Looking at the Bollinger bands we can see that the price is breaking out, a major event happening 10% of the time. In these situations, one should be very careful. A potential pullback is likely and probably followed by a period of consolidation before going back on the ascendant slope.
In terms of indicators, the RSI(14) is reaching very high values of overbought, signaling a potential correction. The MACD lines are still diverging and we are way above the 20 days moving average.
The analysis is based on the latest close price (00:00 UTC time, daily basis)
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