Bitcoin price continues to consolidate and it seems like that bulls are waiting for a new catalyst before they can break the all-time high. Looking at the Bitcoin’s price action for the past few days, it becomes very clear that Bitcoin’s volatility has dropped enormously. This means that the beast is on ease.
On the daily time frame, the Relative Strength Index, RSI has started to move away from its overbought region, something we desperately need to see. The longer the RSI stays near the overbought zone, anything which is near or above 70, it makes traders nervous to take a bullish view. The most common understanding among traders is that this asset class is likely to face correction because the RSI is indicating that it is overbought.
Overall, the Bitcoin’s price trend shows that the BTC’s price continue to trade above the 50, 100 and 200-day SMA on the daily time frame, and as long as this continues to remain in place, bulls have very little things to worry about. This is because it confirms that bulls are in control of the price. The most critical price level remains the recent low swing which represents the immediate support. It is at $30,211. As for the resistance, it is still at all time high of 42,000 approx.
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