💥Bitcoin reached an ATH of $89,900 on Tuesday. Profit-taking trades are surging as traders attempt to sell at the highs. According to Santiment data, some holders are realizing profits as the current euphoria is at a peak, though intense, similar to mid-March when Bitcoin was in its previous all-time high cycle.
💥Bitcoin price forecast: Higher likelihood of a pullback
👉Bitcoin price reached a new all-time high of $89,940 on Tuesday after seven consecutive green candles since November 5, indicating that the rally may have been excessive. At the time of writing on Tuesday, the trading price dropped to around $86,000.
👉The Relative Strength Index (RSI) is also at 76, well above the overbought level of 70. This indicator is trending down, signaling that risks are increasing. Traders should be cautious when adding to their long positions, as a move away from the RSI overbought area could provide a clear signal of a pullback.
👉If BTC faces a correction, the price could drop 8.5% from the current level and retest the support level of $78,807.
👉However, if buyers continue to push higher, the rally could extend to test the Fibonacci extension level of 241.40% at $99,887, drawn from the July high of $70,079 to the August low of $49,000.
