Bitcoin: a move toward overbought side

Decreasing inflation data posted during the previous week, impacts the investors sentiment for riskier assets. After a few weeks of struggling the crypto market gained some momentum during the previous week, with BTC managing to move away from the 63K levels, testing the $ 65K resistance line as of the end of the week.

After several days of testing the 63K, short term support, to the downside, BTC finally managed to revert back to the upside and to test the $ 65K longer term resistance line. The highest weekly level reached was $66.400. Interestingly, with the latest move to the upside, the RSI did not manage to reach a clear overbought market side. Instead, the indicator stopped at the level of 65, leaving some further space to the upside, until the clear overbought market side is reached. Moving average of 50 days is modestly converging toward the MA200, with a significant distance between two lines, in which sense, there is no indication over the potential cross.

The $ 65K is a long term important line for BTC, in which sense, it could be expected that the market will spend some time here testing this level. As per current sentiment, the testing will be more oriented toward the potential for higher grounds. Current charts are showing this potential, but on a longer time scale. Still, for the week ahead, a modest reversal is probable, but only till the levels modestly below the 65K. There is a decreased probability that the 63K might be reached again. On the opposite side, it is highly probable that the market will test potential for the higher grounds, at least till the level of 67K.