After six straight days of upside, we're seeing a pullback now in the crypto space. Bitcoin bulls are taking a breather, and they'll probably be looking to buy a dip and defend supports.
Right now, supports are at $8,800, $8,250, and then down to $7,600. This whole region looks to be pretty supportive, so if there's a sustained pullback, I think we would be looking for some longer charts to support this zone.
The weekly has seen declining overall volume. Since prices made a new higher high, this is a little suspect and obviously doesn't scream strength. Peak volume has come over a month ago, so combine this with falling search interest, and there's a strong case for a pullback.
Weekly RSI levels are also diverging from price action, so this could be another sign we have seen the highs for this immediate trend. Additionally, RSI was definitely overbought and weekly RSI was at 80. Since we were coming off of a sustained bear market, this is definitely a strong indicator (similarly to oversold weekly RSI in a bear market).
Hope you all have a great Tuesday!
