- BTCUSD goes parabolic, gaining around 20% since Monday
- Jumps above 60,000 and is on track to test all-time highs
- Momentum indicators look extremely overbought
BTCUSD (Bitcoin) has experienced an exponential rally since the beginning of the week, which has sent the price within breathing distance from its all-time highs. However, the momentum indicators are currently deep in their overbought zones, increasing the odds for an impending pullback.
If Bitcoin storms to fresh highs, the December 2021 resistance of 64,300 might curb initial upside attempts. Breaking above that zone, the price may challenge the October 2021 peak of 66,980. A violation of that hurdle could open the door for the all-time high of 69,000 registered in November 2021.
On the flipside, should the price undergo a pullback, the bears could attack 59,440, which served as both support and resistance in the November-December 2021 period. Further declines could then come to a halt at the October 2021 support of 57,690. Even lower, the November 2021 support of 55,500 could provide downside protection.
In brief, BTCUSD has exploded since the beginning of the week, eyeing all-time highs. Nevertheless, traders should not rule out a correction as the advance seems immensely overstretched.
