Bitcoin due new 'big rally' as RSI copies 2018 bear market recovery

Bitcoin due new ‘big rally’ as RSI copies 2018 bear market recovery

Bitcoin (BTC) is in for a new “massive rally” as market power copies situations from after the 2018 bear market.

According to the newest evaluation, BTC/USD will proceed to move increased “after some consolidation” because of key alerts from its relative power index (RSI).

Bitcoin prints never-before-seen bullish divergence

With the BTC worth positive factors nonetheless coming, Bitcoin bulls are feeling more and more assured regardless of widespread mistrust of the longevity of the present rally.

For widespread dealer Crypto Wolf, a key phenomenon now underway units Bitcoin’s newest recovery other than all others.

RSI, he famous on Jan. 18, had printed a long-awaited bullish divergence on weekly timeframes — one thing which has by no means occurred earlier than.

“BTC printed a uncommon weekly RSI bullish divergence. Never occurred in BTC historical past, a as soon as in a life alternative,” he summarized on Jan. 21.

RSI is a elementary gauge utilized by merchants to find out whether or not an asset is overbought or oversold at a given worth. The weekly print has been lengthy within the making, with Cointelegraph reporting on its arrival prematurely on the finish of final 12 months.

“Technicals had been there, charts had been screaming backside however as typical majority was in full bear mode,” Wolf added.

BTC/USD 1-week candle chart (Bitstamp) with RSI. Source: TradingView

Analyst: “Some consolidation” will precede upside

With that, Bitcoin is starting to repeat the sort of renaissance final seen on the finish of its earlier bear market in early 2019.

Related: Dead cat bounce? Bitcoin price nears $23,000 in fresh 5-month high

Trader and analyst Trader Tardigrade, additionally recognized as Alan on social media, thus predicts that the nice instances will proceed for some time to come back.

“BTC has been repeating the sample in RSI and Price Action to 2019 backside,” he told followers final week.

“On day by day chart, 1. RSI Strong uptrend to overbought zone 2. $BTC had a major drop earlier than that 3. Sudden patrons purchased up $BTC. Big rally can be following after some consolidation.”

BTC/USD annotated chart. Source: Trader Tardigrade/ Twitter

Daily RSI stood at close to 87 on the time of writing, Data from Cointelegraph Markets Pro and TradingView confirmed.

This is its highest since January 2021, months earlier than BTC/USD set new all-time highs of $58,000 in April and $69,000 in November.

BTC/USD 1-day candle chart (Bitstamp) with RSI. Source: TradingView

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