[](/u/XBTFX/)
Bitcoin: clearly overbought
[BITSTAMP:BTCUSD](/symbols/BTCUSD/)Bitcoin
Bitcoin is on the road again.During the previous week another significant news hit the market, which strongly pushed the price of BTC to the upside.Namely, Deutsche bank, the largest bank in Germany and a significant player in the world, filed with the local regulator to gain a license for a digital asset custody business including crypto currencies.Adding to it a previous announcement from BlackRock, regarding filing to SEC its first BTC ETF, was a clear sign to the market that big players are now stepping in the crypto business, and are ready to support it in the future period.This also means further acceptance of BTC in the mainstream.It was also a reliving moment, considering that previous SEC`s steps taken against Binance and Coindesk were jeopardizing the whole crypto ecosystem.Market reaction was immediate, and the BTC was pushed to the levels above $30K as of the end of the week.
BTC started the previous week in a positive mood, above the level of $26K.Highest weekly level reached was $31.4K, after which, the coin modestly reverted, ending the week around $30.6K.
Due to the strong push to the upside, RSI was drawn to the level of 73, which is a clear sign of an overbought market.Buying orders were dominant, however, there has been some selling occurred, eventually due to closing of positions or margin calls.
Moving average of 50 days changed the course to divergence from MA200, which is a positive sign that the cross would certainly not occur in the future period.
BTC had an excellent week, but it is time for a short reversal.The price clearly reached an overbought side, due, some price correction might be expected in the coming days.
Charts are pointing to the level of $30K which would most certainly be tested.A short-term stop for BTC is level of $28K, with some potential to be tested in the coming days.A move to higher grounds might occur only in case of some more positive news, which are unknown at this moment.
BTC started the previous week in a positive mood, above the level of $26K.Highest weekly level reached was $31.4K, after which, the coin modestly reverted, ending the week around $30.6K.
Due to the strong push to the upside, RSI was drawn to the level of 73, which is a clear sign of an overbought market.Buying orders were dominant, however, there has been some selling occurred, eventually due to closing of positions or margin calls.
Moving average of 50 days changed the course to divergence from MA200, which is a positive sign that the cross would certainly not occur in the future period.
BTC had an excellent week, but it is time for a short reversal.The price clearly reached an overbought side, due, some price correction might be expected in the coming days.Charts are pointing to the level of $30K which would most certainly be tested.A short-term stop for BTC is level of $28K, with some potential to be tested in the coming days.A move to higher grounds might occur only in case of some more positive news, which are unknown at this moment.
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