Bitcoin has undergone an extremely strong rally over the past day, despite the coin facing a strong dip into Christmas. Per CoinGecko, the coin is up 8% in the past 24 hours alone, pushing from the $24,500 region to $26,700 now.
At the peak a number of hours ago, BTC traded as high as $27,000 in some markets. Bitcoin is outperforming altcoins as it continues to suck the air out of altcoins due to the strength of the rally and the institutional focus on Bitcoin.
Bitcoin Could Top Near $28,000
With such rapid price action to the upside, analysts have begun to speculate where this market will top.
One trader recently shared the chart seen below and postulated that the market could top at $28,000 in the near to medium term. The chart shows that Bitcoin’s relative strength index (RSI) reading is currently at 2017 highs, indicating that the market is overbought to some extent. While this does not exactly signal that an immediate correction will take place, it may show that investors should start to get cautious about expecting further upside.
According to the analyst that shared the chart below, a point at where this rally could top in the near to medium term is $28,000 to $29,000. That is where there is the 1.618 Fibonacci extension of the rally from the 2017 China “FUD” lows to the $20,000 highs.
Chart of BTC's price action over the past few years with an analysis by crypto trader and coder TraderXO (@Trader_XO on Twitter). Source: BTCUSD from TradingView.com
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