Bitcoin (BTC) Price Analysis: FOMO Trap or Buying Opportunity For Long Term Rally to $28K?

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  • After BTC breaking above its ATH and rallying above $23K, investor’s mindset may turn doubtful as there’s no certain resistance and support levels derived. 
  • One of the main impetus behind this bullish rally is said to be buying fueling done by institutional buyers.
  • This year Bitcoin has shown a bullish rally by gaining over +200%, and investors are hoping for major targets of $28,400 and $33,260

Is BTC Rally Overheated Or Predictions About Bulls Making it to $30K Makes Sense? 

While Bitcoin Breaks above its ATH and continues to gain new levels, investors’ sentiments might turn doubtful regarding price corrections from such bullish levels. Meanwhile, institutional investors and big whales continue to provide buying volume to the world’s largest cryptocurrency, the short-selling liquidation has also mounted around $4.3 billion. The future open aggregate interest of BTC has almost risen by 90% over the past two months justifying the firm bullish belief of the investors. 

However, we might have witnessed a real case of FOMO from this positive momentum and a little step of caution should be prevailed among the investors. On the charts, the candles have yet not shown any significant signs of retracements on 1-day candlestick. The current ATH is set around $23,777 from which the levels slightly retracted back to $22500 which could be acting as a new support point in the upcoming trading sessions. 

Technical Levels Remains Overbought With No Red Candle Formation 

Source: Tradingview
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Bitcoin (BTC) over the weekly chart gives a positive breakout from the descending triangle pattern and clarifies its previous all-time high of $19,900 and currently trading above the price levels of $22,500. Over this year, after correcting the $4100 in March 2020, it gains over +478% from the lows of 2020. The weekly chart’s resistance is placed at $23,800, and after clearing this resistance, the next target on the higher side is placed at $25,000, $28,400, and the final target is $33,260. However, after a bullish rally, some retracement can be expected to $18,800 can be considered the support. 

Source: Tradingview

The Relative Strength Index (RSI) of Bitcoin is trading at 85.67, and it is almost reaching a similar level as in 2017, and this would indicate that at some point soon, it will see a healthy retracement. 

Source: Tradingview

On the daily chart, Bitcoin broke out from the symmetrical triangle, and it could continue to $24,200, and it can be considered the resistance on the daily chart. 

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Krystian Bielanskihttp://www.thecoinrepublic.com
Krystian is a crypto trader and investor with a background in IT based in Hong Kong. He specialises in technical and fundamental analysis working closely with chartist and algo programmers.

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