We are seeing the bullish trend continue at the start of the new month.
But before getting over excited we are soon reaching the ceiling in terms of the relative strength index.
An RSI of 70 brings us in overbought territory, and right now the RSI is 62.
Drawing a trend line from our previous bottoms at $6000 and $6500 brings us slightly above $7600.
Another trend line from the two latest peaks at $10,000 and $8,500 brings us around $7600 as well, where those two lines cross each other.
This in combination with the by then over bought RSI will result in quite an obstacle to break through.
Another set of trendlines (connecting our ATH, with our latest peak (resistance turned support), and our previous support line all the way back to Sep 2017), cross soon after around $6500.
Based on that the most likely scenario would be to reach $7600 first, with a correction towards $6500 before moving further!
Do you have an alternative view? Please let us know in the comments below or join our Discord to discuss.