The cryptocurrency managed to break the resistance on our 38.2% Fibonacci retracement at $46,72. The pair trades above the short and long-term moving averages which crossed on Friday’s session indicating that the uptrend would continue.
The Bollinger bands are wide and continue opening, which will bring higher volatility to the asset, the pair trades above the upper band, suggesting that the price is relatively high, this could push investors to close their long positions, causing the price to drop in the short term, if the upper band expands more aggressively, we would expect the uptrend to continue.
The relative strength index is at 69% which is almost on an overbought status, this could also be an incentive to close long positions; however, we have seen Bitcoin stay overbought for a while before retracing, at this point is hard to tell if the price will continue to rise after being overbought and trading above the upper Bollinger band, but we wouldn't be surprised if that happens.
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