So, Bitcoin exploded even despite the weekly bearish engulfing pattern. Short squeeze? FOMO? Impatient bulls? Whatever the reason, we saw a quick 2,000 bump in price. Now we find ourselves in a position where the RSI is severely overbought, and it appears that unless there is some unforeseen catalyst that will push us higher, we are set to correct... the question remains, to what value? The way I see it, it kind of depends on where we close this week. We are coming up on some important support and resistance lines. It feels like we are overbought at this point and are headed back down, which we would expect to see the 14D RSI head back to the sub 30's. Not sure where the value will be at that point... could be anywhere between $5,800 and $6,500. It is clear to me at this point, with this massive bump in price this past week, that we probably aren't going lower than $5,800. It's possible we could get a quick sell off down to $5,000 but I don't know that we will see that. This is not a recommendation to buy, but I would keep my eye on the 14D RSI and see where we're at when it crashes to 30. Could be a great buying opportunity, as it has been in the past. As always, best of luck!
