Bitcoin Reaches $8.3k: Chase the Rally or Wait for the Pullback?

Bitcoin reaches $8.3k and everyone is asking themselves how high it will go. The cryptocurrency market never ceases to amaze even the most veteran of traders. Bitcoin’s price has skyrocketed over 25% in the last three days. From a technical standpoint, Bitcoin was in overbought territory three days ago, yet a pullback never came. Amazingly, nothing in the fundamentals of Bitcoin have changed since this run began. As a hodler, this rally is favorable and it will speak to the long-term success of Bitcoin. As a technical analyst, this rally is unexplainable and certain indicators have been telling us price has been overbought since $6k.

Weekly

Looking at the weekly chart above, TD sequential is on a green 6 of 9 candle. Therefore, sequential is telling us that there could be three more weeks of upside. Within these three weeks price could increase to $20k or top around $9.4k.

Fibonacci Resistance Levels

The chart above displays Bitcoin’s fibonacci resistance levels. The most critical level for Bitcoin to break through is the 0.382 fibonacci level at $9.4k. If Bitcoin cannot cleanly break above this resistance, look for a hard rejection to present an optimal opportunity to buy the dip.

Daily

Looking at the daily chart above, the sequential indicator is on a green 7 of 9 candle. As of now, sequential is telling us price will continue to increase for the next two days.

4 Hour

Price has topped at an 8 on the 4hr chart above. We are now finishing the sequence of a green 9 and the moving averages below it are looking beautiful for the bulls.

Conclusion

As Bitcoin reaches $8.3k, the bulls are still in full control. However, news media and crypto twitter are experiencing elation and exuberance. Additionally, the Crypto Fear and Greed Index is at an all-time high. Since there are not many fundamental reasons why this move in Bitcoin has occurred, we are expecting an eventual pullback. This pullback may not come for a few days or even a few weeks. Nevertheless, Bitcoin’s next critical resistance level is $9.4k. If Bitcoin is rejected at this critical fibonacci level, then we will likely experience the 30-40% pullback many analysts have been calling for. If Bitcoin makes a clean break above $9.4k, then the next critical resistance level is not until the 0.618 fibonacci level at $13.2k.

Disclaimer: I am not a financial advisor, this is not financial advice. Please do your own research and make objective decisions. The author of the article owns Bitcoin.