Strong overbought and a number of other technical factors served as barriers to the Bitcoin price on its way to the $ 6,000 level, I'm sure analyst CoinDesk Omkar Godbowl.
According to the analyst, the price of the first cryptogram must be kept above $ 4912. Otherwise, BTC may return to $ 4,625, through which a 200-day moving average is currently going.
The bullish sentiment intensifies if the price exceeds the $ 5347 mark, which is the maximum of the Doji weekly candlestick, indicating uncertainty. This will open the door to the $ 6,000 psychological tag, but an outperformed relative force index (RSI) can be a major obstacle.
Certainly the upward movement has stopped as a result of several factors, including short-term overheating of the market and a decline in trading volumes at rising prices.
The relative strength index on April 2 was in the overbought zone above 70.00. It happened against the backdrop of a sharp jump in prices over $ 5,000. As we move to $ 5,345, RSI for the first time since December 2017 reached 90.
Usually, after reaching a strong overbought, the price either rolls down or goes to the side. At present, RSI is still in the zone above 70.00, but indicator values are gradually decreasing, indicating an increasing probability of price correction.
Declining trading volumes
With regard to the volume indicator, you can see that shortly after the $ 5,000 jump and the subsequent move to $ 5,347, the volume of trades declined rapidly. This resulted in a bearish divergence, indicating a high probability of retracement of prices to USD 4912, which corresponds to the local low of April 11th.
Note that in the last two weeks the daily trading volume has dropped from $ 24 billion to $ 10 billion.
In the younger timeframe, a pattern of bear head and shoulders is created. If the price falls below the "throat" that goes over $ 4988, another likely target will be a $ 4629 brand.
Currently, the first crypt currency is traded at $ 5,140. Over the last 24 hours, the weighted average BTC has increased by 1.3%.
Recall, recently the head of BKCM LLC Brian Kelly expressed the opinion that within two years the Bitcoin price will update the historic maximum.
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