BTC heads towards $31k: What's next for the king?

So, what’s next for Bitcoin? Let’s take a look at what the charts are saying.

TLDR

• BTC has surged, driving up altcoin prices, but it faces a major resistance at $31k/$32k.
• Technical analysis shows BTC aiming for prior highs, with $31,300 as a significant resistance level.
• RSI indicates overbought conditions, urging caution, while funding rates suggest a healthy market.
• Despite the strong move, caution is advised due to overbought conditions and looming macroeconomic uncertainties.

Disclaimer: Not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results. “One Glance” by Cryptonary sometimes uses the RR trading tool to help you quickly understand our analysis. They are not signals, and they are not financial advice. Any capital-related decision you make is your responsibility and yours only.

BTC | Bitcoin

A phenomenal move from BTC that has led to even bigger moves in altcoins. The move in alts has taken us by surprise, but the key note here is that BTC is moving higher but is at the last prior major resistance at $31k/$32k. This is the key resistance zone. 

Technical analysis

BTC has had a really good, strong move higher, now eyeing the prior highs of $31k/$32k, with the main resistance at the $31,300 level. BTC closed well above the $28,300 horizontal level and flipped it into support by building a base above it, which helped fuel BTC to go higher. We’re now seeing price test the $31k level while battling against the underside of the main uptrend line that may act as resistance.

RSI and funding rates

The RSI is well into overbought territory now, at 77 on the daily, 82 on the 12hr and 70 on the 3-day chart. This would immediately suggest us to be somewhat cautious here. But there are no divergences here yet, so could the price increase to create a bearish divergence? Sure, this is possible. Ultimately, here, though, price is very overheated. 

Funding rates are very positive again, yet open interest isn’t ridiculously high, so this is somewhat of a healthy market in terms of funding and open interest. 

Conclusion on trading BTC

Despite the strong move from BTC, we’re well into overbought territory and haven’t broken above the main resistance zone (between $31,300 and $32,000). The overall strength of the move here has certainly caught us by surprise. However, we wouldn’t be fomo’ing in here and would remain cautious at these levels. 

We’re still very cautious about the macro and the many headwinds we believe are on the horizon. We feel risk assets, in general, will come down in the coming months, and Crypto won’t be immune to this. 

Action 

1. BTC has moved up well. However, we’re not fomo’ing in, but we’re exercising caution here. 
2. We remain on the sides to watch this play out until the major $31,300 to $32,000 resistance can be broken.