Bitcoin surged to a six-week high of $119,500 this week, but analysts warn the rally may pause as key indicators flash «overbought.»
The world’s largest cryptocurrency has gained nearly 10% in the past seven days, mirroring gold’s rise. However, the Relative Strength Index (RSI) on the four-hour chart has hit nearly 90 out of 100 — its highest level since July. Traders say this suggests a short-term correction or retest of support levels is likely before Bitcoin can push higher.
«Everything is overbought but no signs of initial weakness,» trader Roman said on X, noting a «simple breakout and retest» scenario.
Despite cooling signals, momentum remains strong. ETF inflows into U.S. spot Bitcoin funds totaled $1.6 bn in just three days, according to Farside Investors. BlackRock’s iShares Bitcoin Trust (IBIT) led with $600 mln and has now entered the top 20 largest ETFs by assets.
Some analysts believe Bitcoin could still climb toward $124K in the coming days if buying pressure continues.
