Technical Analysis: Bitcoin Price Is Overbought But Not At Extreme Level

Yesterday, Bitcoin price reached another record high, topping $34,000 before slipping this morning. Although fundamentals can partly explain the recent rebound, the strength of the move has been discussed since several days.

#XBT #XET | #Bitcoin Holds Near Record, #Ether Jumps Amid #Crypto Rally – Bloomberg
*One Bitcoin is now equivalent to about 17 ounces of #Gold, compared with little over 3 ounces amid the pandemic selloff in March.
*Link: https://t.co/IgWrQgAIfP pic.twitter.com/A9EZhMH2r3

— Christophe Barraud (@C_Barraud) January 4, 2021

On the technical front, Jean-Charles Gand, Chief Technical Analyst at Market Securities, noted this morning, Bitcoin price “looks overstretched here as pointed out by the RSI indicator. However the chart below shows that Z-score 200-WEEK moving average stands at +5.6 standard deviations, which is still below the record level of +7.6 standard deviations reached on Dec.10, 2017.”