Bitcoin continues to exhibit firm performance, holding above $63,500 at the time of reporting, according to data from CoinMarketCap. This stability marks no change from the previous day and represents a 7% increase over the past week. The ongoing uptrend is expected to persist as long as Bitcoin prices remain above the critical support zone between $58,000 and $60,000.
Since the dip observed in early August, Bitcoin has risen by 30%, now challenging the highs of that month around $65,000. Optimism among traders persists, fueling speculation of a further price climb. Nonetheless, high expectations rest on buyers successfully pushing prices above the $65,000 threshold to sustain bullish momentum.
However, signs of weakening momentum are emerging. A notable development is the Relative Strength Index (RSI) in the monthly chart, which has recently fallen below the 80% level. Typically, an RSI reading between 80% and 100% suggests overvaluation or that the asset is in an overbought state. This drop in RSI indicates a potential slowdown in upward momentum, posing concerns for bullish traders.
The implications of this RSI movement could extend into daily and shorter timeframes, potentially signaling a readiness among sellers to drive prices lower, especially if the $65,000 barrier is not breached by the bulls.
Despite these bearish signals, there remains a glimmer of hope. Historical patterns show that Bitcoin often recovers steadily when the RSI dips around this level, although this recovery is not guaranteed in every instance. Traders are advised to closely monitor price trends in the forthcoming days. A decline toward the $60,000 mark may dampen the current positive momentum and hint at the onset of a possible correction.
In contrast to the bearish concerns, some analysts maintain a bullish outlook. One analyst suggests that if Bitcoin overcomes its current weakness and surges toward $73,000, a strong rally could ensue. A rally of this magnitude would draw in fresh liquidity, particularly in the futures market, potentially driving prices to new highs beyond previous all-time records. However, for this bullish scenario to unfold, Bitcoin must first gather enough momentum to decisively close above the $65,000 resistance line.
