Bitcoin Rockets to $79K: Local Top or Just Getting Started?
The Bitcoin price surged to $79K on Friday, continuing the frantic pump that has been experienced across the crypto market. So far this mad surge has gained nearly 24%, or the equivalent of $15,000 since Wednesday. Has a local top been reached now, or can there still be one last spike over $80K?
Massive Bitcoin spike, but now very overbought
Source: TradingView
The 4-hour chart for the $BTC price shows us that the top is probably now in. That’s not to say that there couldn’t be yet another spike that takes the price into the lower $80K area, but in the main the price is now extremely overbought.
On this low time frame it can be seen that the Stochastic RSI indicators are right at the top, and in an even more telling manner, the RSI indicator is approaching the mid-90s. Seldom does the price get this overbought.
It might be expected that this towering collection of green candles does start to be added to by some red candles in the near future. How far down could the price correct? $69K lines up with the 0.618 Fibonacci level, but given the extreme bullishness for Bitcoin right now, the most shallow of the Fibonacci levels is at $75,550. A bounce from here would certainly continue the bullish bias to the upside.
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