Keith McCullough, CEO of Hedgeye Risk Management, has just cautioned bulls by pointing out that Bitcoin is currently in overbought territory.
BITCOIN: signaling immediate-term TRADE #overbought within its Bullish @Hedgeye TREND (booking some gains) pic.twitter.com/N2gKGLpUEY
— Keith McCullough (@KeithMcCullough) February 7, 2020
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Creeping towards $10,000
However, BTC still remains in a bullish trend, meaning that this is only an opportunity to “book some gains” before another leg higher.
The BTC price reached an intraday high of $9,871 at 11:30 UTC on the Gemini exchange. Bitcoin has since given up some of its gains after more buyers refused to show up to the party.
At press time, the BTC price is sitting at $9,770 with the one-day relative strength index (RSI) standing at 68.73.
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Bitcoin is still in a bull market
While there is a strong possibility of a pullback in the immediate future, McCullough maintains that Bitcoin remains in a bullish trend. Considering that he’s far from being a crypto cheerleader, Hedgeye’s analysis clearly has no ideological bias.
In its recent research, Fundstrat mentioned that Bitcoin was in “textbook reacceleration”. The firm’s analyst expected only a shallow correction to take place.
Speaking of those overbought RSI readings, they are not necessarily a harbinger of an imminent price crash. Back in April 2019, U.Today reported on BTC reaching its highest RSI level since December 2017, but it was only the start of last year’s rally.
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