- Relative Strength Index: The RSI at the time of writing is at 63 points. This means the market does have some power but is not quite overbought. We can see the RSI toppled over 70 points earlier, which is where Bitcoin made its crazy gains. If the RSI can stay high, Bitcoin just may make another move upwards.
- Bollinger Bands: The current price is touching the top band. This means that we will either see a breakout in the next few hours, or the price will consolidate by a few percent and test support. Most likely, we are going to see a small retracement back (1-2%) followed by either sideways trading or another move up. A significant move down in the next few hours wouldn't make any sense.
- Volume: We saw some great volume earlier today during the bull run. Right now the waters are calm and volume is relatively low. If we don't see any big orders the next couple hours, the chance for another breakout in the near future will decrease significantly.
Bitcoin Price Prediction
The RSI is pointing to a strong market, Bollinger Bands are signalling a retracement, and Volume tells us a sideways market is ahead. Each indicator is telling us something completely different, what do we do with that? When the indicators make no sense, the market usually doesn't either. That means that we should expect further volatility in the next day or two. Hopefully the volatility comes in the form of another bull run, as dropping down below the $10,000 level again is going to be very anticlimatic.
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