Bitcoin’s performance in 2020 has been great surging from a low of $7,175 on January 1st to a high of $9,449 just a few hours ago. Bitcoin has clearly formed a strong daily uptrend but the RSI (Relative Strength Index) is overextended.
It is certainly possible that Bitcoin will experience a pullback down to $8,500 or so before going up again. The nearest support level on the daily chart is at $8,238 and BTC is currently trading at $9,342 so the bulls have a lot of space to work with.
Can Bitcoin Keep Up Its Momentum?
Although Bitcoin’s RSI is overextended on most time frames, this doesn’t necessarily mean the digital asset cannot keep posting gains. History has shown that the RSI can get overextended for long periods of time like back in September 2019 when Bitcoin fell down to $8,464 with an RSI level of 22 points.
The RSI continued to be in the oversold zone for the next 2 weeks and Bitcoin continued to fall down to $8,012 and eventually $7,300.
There are no red flags for the bulls right now. All time-frames are in favor of the bulls and the weekly chart is close to confirming an uptrend.
Will Bitcoin Halving Affect Its Price?
According to most analysts, Bitcoin halving has always been extremely positive for Bitcoin. Historically this is accurate but history doesn’t always repeat itself. Either way, Bitcoin halving itself is definitely good for Bitcoin and will not have a negative impact.
If the bulls can manage to break above $9,500 within 24 hours, there is a good chance for the digital asset to reach $10,000.