Early warning signs emerge for BTC after rising above $80,000: Bitcoin Price Analysis

The US election hype might be over, but it looks like Bitcoin’s bullish momentum is here to stay.

The largest cryptocurrency is trading well above $80,000 for the first time in its 15-year history.

Technical Analysis

By Edris Derakhshi (TradingRage)

The daily chart

Bitcoin price has been making higher highs and lows since its rally from the $50,000 area, breaking through several resistance levels. However, after Trump’s resounding victory in the US election, the asset has started to recover aggressively, reaching a new all-time high and even surpassing the $80,000 level.

BTC is currently trading around $82,000 and investors expect the $100,000 region to hit soon. However, there is a worrisome RSI signal on the daily time frame as momentum is overbought, which could lead to a short-term consolidation or correction.

The 4 hour chart

The 4-hour chart shows a pretty similar picture to the daily chart, as the market has moved up quickly.

Once again, the RSI is showing a clear overbought situation. However, given the overall structure of the market and the support levels available nearby, it is likely that even a correction will end up with a recovery from the $80,000 support area or eventually the area of $74,000 support.

Chain analysis

By Edris Derakhshi (TradingRage)

Active Bitcoin addresses

Although Bitcoin is trading at all-time highs, analysts are concerned that the market may be entering a euphoric state, which could lead to a crash. However, this does not necessarily seem true, given the activity of the BTC network.

This chart presents the Bitcoin Active Addresses metric, which shows the number of active wallets on the world’s largest blockchain network. This value typically reaches all-time highs around market highs due to retail traders rushing into the market.

The chart shows that the 100-day moving average of active addresses is around the same values ​​seen during the $15,000 low earlier this year. However, note that while this could indicate great upside potential for the price if this number doesn’t rise quickly, it also shows a massive divergence, which could lead to a dearth of demand and make it difficult for the price to continue higher.

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