- BTCUSD touches 37,000 for the first time since May 5, 2022
- Momentum indicators remain deep in overbought zones
- These oscillators warn of an impending pullback
BTCUSD (Bitcoin) has experienced a massive rally driven by speculation around the approval of spot-Bitcoin ETFs, which has sent the price to a fresh 18-month high of 37,029 on Thursday. However, the latest advance seems substantially overstretched as both the RSI and stochastics are within their overbought zones for more than two weeks.
Given that the price is currently within overbought conditions, the bears could attempt a reversal towards the February 2022 low of 34,320. Sliding beneath that floor, the leading crypto could face the previous resistance of 31,827, which also held strong in June 2022. A violation of the latter could turn the spotlight to the 30,000 psychological mark.
On the flipside, if the price resumes its persistent advance, initial resistance could be met at the inside swing low of 37,500 registered in May 2022. Further upside attempts may then cease around 40,500, which acted both as support and resistance in the first half of 2022. Even higher, the April 2022 resistance of 42,980 could prove to be a tough obstacle for the price to overcome.
Overall, BTCUSD has been in a steep uptrend since early October, posting consecutive multi-month highs. However, traders should not rule out a downside correction as Bitcoin seems largely overbought at current levels.