It’s always dangerous calling for a pullback in bitcoin, which has often demonstrated a unique ability to rocket higher on a whim. However, given the recent resistance at the $8000-$8200 level, and bitcoin’s propensity for retesting areas of prior resistance (in this case, the $5800 level), I am inclined to believe the probabilities favor a near term pullback to that level before further moves higher.
The recent thrust has brought out the bulls once again, and while the overbought conditions on the RSI are bullish over the medium to long term, in the short term I think the price is a little stretched. The 50 day moving average is also presently around the $5800 level, which further increases the probability we could see a move back to that area which, if completed, would form a bullish cup and handle formation.
Of course, with bitcoin, anything is possible, and we could shoot straight higher from here, but I am keeping my powder dry. If we do retest the $5800 level, I will look to get aggressively long.
