Bitcoin is trading near its all-time highs. But I do not believe the next local top or the cycle top is in yet. The RSI has been a solid signal for calling major local tops in the past.
Right now, itâs elevated (see the orange box) but still has not hit the bearish trendline that marked previous tops (red box).
To me, this says the top is approaching, but we are not there yet. I'm confident Bitcoin still has slight room to push higher.
Keep in mind, this is a high timeframe analysis. It will take weeks to confirm or break, so short-term volatility will not significantly affect this setup.
Yesterday, the US NFP and Unemployment Rate data upset the market as both beat consensus by quite a lot, showing the economy is still strong and so is inflation. This means the Fed might be forced to delay rate cuts, putting longer pressure on risky assets. The data also marked the exact local top.
Two support zones for possible entry stand out:
1. The first is the green support zone, which coincides with my analysis from yesterda using the 12H timeframe. For those who like to be aggressive, now is a good time to open a position.