BTC unexpectedly created a huge 4-hour upward candle. In just 3 hours, the price was able to rise by up to 15%. The price is approaching the local maximum or we will continue to grow?
BTC broke through the point of control at the level of $ 36,740 and thus approached the main resistance at $ 41,000. Sentiment has changed rapidly, but in the long run we are still in the accumulation zone between $ 29,000 and $ 41,000. On the other hand, it is not a classic stable growing leg but a sharp shot, which is the first time during this sideway structure.
If we want to get out of the long-term sideway structure, we have to beat $ 41,000. There is also resistance to maxima in ATH in this area. If we overcame this resistance, the price would definitely end the accumulation zone.
BTC close to maximum?
RSI has already achieved an overbought of 86 points and the last time the chart was at that level was on January 2. Even then, we were close to the local maximum. Thus, it appears that before the price overcomes the mentioned resistance, it creates a local maximum and a slight correction.
The price could first return to the area near the point of control at $ 36,740 and only then in the next leg would overcame resistance $ 41,000. Currently, the market is overheated in the short term.
There was also an increase on the volumes side, but these are not serious numbers. However, it is also necessary to take into account that the number of BTCs is outflowing from the exchanges and less and less people want to trade. Everyone moves BTC to the offline world.
Disclaimer: This article is for information purposes only and should not be construed as investment advice.
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