Today, bitcoin buyers rallied prices to $10,175 on Coinbase – the highest level since Oct. 26. The rally has paused around $10,100 as of writing.
The RSI is pointing higher toward 80, highlighting the strength of the upward momentum.
Looking at the daily chart, we notice that there is little resistance on the way toward the October 26 high of $10,540. A close above that level could persuade more buyers to enter the market, causing a stronger move toward next resistance at $10,939 (September 6 high).
On the flip side, any close below Saturday’s low of $9,654 could cause buyers to exit the market, pushing the prices to deeper support levels.
The previous 4H period closed with a doji candle, reflecting market’s indecision. Alongside that, the RSI has topped out above 70, signaling overstretched conditions.
Thus, a minor downward move may be seen before further gains toward $10,500. The doji candle would become invalid if prices rise above $10,150.