Technical analysis on Bitcoin for October 30th, 2023.
Blue lines- Fibonacci retracement levels
Red line- support trend line
Yellow lines- expected path
green rectangles- overbought spikes in the RSI
Bitcoin is trading around $34,680 just below the 38% Fibonacci retracement of the entire decline from its all time highs. Bitcoin has started making higher highs and higher lows over the last nine months. The RSI is approaching similar overbought levels to the bullish wave that occurred back in January. A pull back followed that provided us with a lower high and another leg higher followed to new higher highs. If the pattern repeats itself, Bitcoin could make a pull back towards $30,000-$31,000 and the red support trend line. A new higher low should form there around these levels and a new wave to the upside should follow. Concluding it is important for bulls to defend the red upward sloping trend line. As long as we trade above it, bulls have the upper hand. In the near term a pull back is justified as the RSI has reached deep inside the overbought area.
