Bitcoin (BTC) is poised for a brand new “main rally” as market energy copies situations after the 2018 bear market.
In response to the most recent evaluation, BTC/USD will proceed to rise “after some consolidation” because of necessary alerts from its Relative Power Index (RSI).
Bitcoin is displaying never-before-seen bullish divergence
With BTC value features but to come back, bitcoin bulls are feeling more and more assured within the present rally regardless of widespread suspicion in regards to the longevity.
For common dealer Crypto Wolf, a key phenomenon now underway is what units Bitcoin’s latest restoration other than all others.
The RSI, he famous on January 18th, had printed a long-awaited bullish divergence on weekly timeframes – one thing that has by no means occurred earlier than.
“BTC printed a uncommon weekly bullish RSI divergence. By no means occurred earlier than in BTC historical past, a once-in-a-lifetime alternative,” he summarized on Jan. 21.
The RSI is a fundamental gauge utilized by merchants to find out if an asset is overbought or oversold at a given value. The weekly print has been an extended time within the works, and Cointelegraph gave advance experiences of its arrival late final yr.
“The techs have been there, the charts have been screeching, however as regular the bulk was in full bear mode,” added Wolf.
BTC/USD 1-week candlestick chart (Bitstamp) with RSI. Supply: TradingView
Analyst: “Some consolidation” will precede the transfer higher
With that, Bitcoin is starting to repeat the type of renaissance final seen on the finish of its earlier bear market in early 2019.
Associated: Lifeless cat bounces? Bitcoin value is approaching a brand new 5-month high of $23,000
Dealer and analyst Dealer Tardigrade, also referred to as Alan on social media, due to this fact predicts that the great occasions are right here to remain.
“BTC repeated the sample in RSI and value motion all the best way to the 2019 backside,” he instructed his followers final week.
“On the every day chart 1. RSI Robust uptrend into the overbought zone 2. $BTC had a major drop earlier than that 3. Sudden consumers purchased up $BTC. After some consolidation, a giant rally will comply with.”
Annotated BTC/USD chart. Supply: Dealer Tardigrade/ Twitter
The every day RSI is near 87 on the time of writing, in line with information from Cointelegraph Markets Professional and TradingView.
That is the best level since January 2021, months earlier than BTC/USD hit new all-time highs of $58,000 in April and $69,000 in November.
BTC/USD 1-day candlestick chart (Bitstamp) with RSI. Supply: TradingView
The views, ideas, and opinions expressed herein are solely these of the authors and don’t essentially replicate or symbolize the views and opinions of Cointelegraph.