Bitcoin may slow its rally after reaching a six-week high, with experts watching for signs of a price correction.
- Bitcoin price hits $119,500, nearing a 10% weekly gain
- RSI shows market is “overbought,” a common sign before pullbacks
- Bitcoin ETFs see $1.6B inflows, with IBIT joining top 20 by assets
Bitcoin Gains Could Slow After Strong Week
Bitcoin rose nearly 10% in a week, reaching $119,500. But now many traders think the rally could pause. The Relative Strength Index (RSI) is near 90, which means the market looks “overbought.” When RSI is this high, it often signals a short-term pullback before more gains are possible.
Popular trader Roman said that Bitcoin is showing no signs of weakness yet, but a price retest is likely. Data backs this up. The RSI reading is the highest since July, when Bitcoin first crossed $123,000 level.
Short-Term Indicators Suggest Cooling
The RSI is a tool that helps traders see if a price trend may soon reverse. Roman and others say a correction might help Bitcoin stay strong longer. On longer charts like the daily and weekly timeframes, Bitcoin has remained “overbought” in past bull runs. That means the price could still go higher eventually.
Roman also noted that volume, RSI, and MACD indicators still support a move toward $124,000 in the coming days, as long as the cooling phase is short.
ETF Inflows Support Long-Term Strength
Bitcoin ETFs are also performing well. Over $1.6 billion entered U.S. Bitcoin ETFs in just three days. BlackRock’s iShares Bitcoin Trust (IBIT) brought in $600 million alone. ETF analyst Eric Balchunas said IBIT is now among the top 20 biggest ETFs by assets.
He added that if current trends continue, IBIT could enter the top 10 ETFs by Christmas 2026. The sentiment around ETFs is positive, helping boost long-term confidence in Bitcoin, even if prices dip short-term.
Source: cointelegraph.com