Bitcoin showed resilience over the course of the weekend, twice bouncing off the $645 level and steadily working back to $655. Another period of consolidation looked to be forming at $655, but a breakout occurred which saw the price top $664 before settling at the $662 level.
$680 is again the focus on the upside, with resistance expected there should this breakout continue. A continued run to $680 would mark a 50% Fibonacci retracement of the slow decline that began five days ago. Traders still holding their position from recent entry should trim their positions should bitcoin test the $680 level, where all attempts to push past resistance there have easily failed in the last three weeks.
The RSI Pattern that was previously established has been broken multiple times, and can no longer be considered reliable for day trades. The red arrows on the TradingView chart above indicate the first break. Previously, an RSI above 65 marked the entry for a short position, to be closed when the RSI cooled to 55. As you can see, RSI breached 65 slightly below the $656 level, but the breakout continued to $659 even as RSI fell to 55. If a short position had been established here, it would have resulted in a loss.
This incident also affirms the need for tightly established
It is likely that price is looking to break out of the $640-$680 level it has found itself stuck in the last two weeks. Whether that break will be bull or bear is unclear.