Bitcoin Rally Runs Out of Steam: Hold the Gains or Head Back Down?

Having risen out of a double bottom and a retest of the bull market trendline, the $BTC price put on around $2,000 in a relatively short amount of time. However, the rally is faltering. Can the bulls at least hold on to a good part of the gains so far, or will the bears bring the price back down to earth?

Higher lows Vs lower highs

Source: TradingView

One important thing to note when looking at the short-term time frame chart is that while the the price action is making a series of higher lows, no doubt due to the influence of the bull market trendline, a series of lower highs is pushing the price towards another decision - whether to break out higher, or to break down below the bull market trendline.

Currently, the $BTC price is quite overbought on most of the shorter term Stochastic RSIs. Therefore, going higher from here, although perfectly possible, would not be sustainable for very long. Sideways and probably downward for the next couple of days or so would make sense, with another higher low a decent probability.

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