The cryptocurrency managed to break the resistance at the 78.6% Fibonacci retracement at $57,121, the highest level in more than five months. The price could face a pullback in the short term as the RSI enters an overbought status.
The relative strength index entered an overbought status that could start driving the asset price down in the short term; however, we have seen Bitcoin stay overbought for more than ten trading sessions in the past.
The Bollinger bands are very wide, and high volatility can be expected in the upcoming sessions. The price trades closer to the upper band, suggesting that it is relatively high; the bands continue to open, which is great for the uptrend continuity. We believe that the price will pull back and gather strength to complete the breakout of the $57,121 resistance.
Our parabolic SAR indicates the continuity of an uptrend, which is natural after such a good rally. For now, I would stay out of the markets as they are very unpredictable; we usually see a price correction in situations like this. The pair needs to come back down to continue its uptrend stronger.
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