Bitcoin due for another ‘big rally’ as RSI copies 2018 bear market rally
According to the latest analysis, BTC/USD will continue to rise “after some consolidation” thanks to key signals from its Relative Strength Index (RSI).
Bitcoin Prints Unprecedented Bullish Divergence
With BTC price gains still to come, Bitcoin bulls are feeling increasingly confident despite widespread wariness about the longevity of the current rally.
For popular trader Crypto Wolf, a key ongoing phenomenon sets Bitcoin’s latest recovery apart from all others.
RSI, he noted on Jan. 18, had printed a long-awaited bullish divergence on weekly timeframes – something that had never happened before.
“BTC printed a rare weekly bullish RSI divergence. This has never happened in the history of BTC, once in a lifetime opportunity,” he said. summary is Jan 21.
The RSI is a fundamental gauge used by traders to determine whether an asset is overbought or oversold at a given price. The weekly print has been a long time coming, with Cointelegraph reporting its arrival in advance late last year.
“The technicals were there, the charts were screaming at the bottom, but as usual the majority was in full bearish mode,” added Wolf.
Analyst: “Some consolidation” will precede the rise
With that, Bitcoin is beginning to repeat the kind of revival last seen at the end of its previous bear market in early 2019.
Related: Dead Cat Bounce? Bitcoin price nears $23,000 in new 5-month high
Trader and analyst Trader Tardigrade, also known as Alan on social media, predicts that the good times will continue for a while.
“BTC repeated the pattern of RSI and price action through 2019,” he said. Told subscribers last week.
“On the daily chart, 1. RSI Strong upward trend towards the overbought zone 2. $BTC saw a significant decline before that 3. Sudden buyers bought $BTC. A big rally will follow after some consolidation.
The daily RSI stood at nearly 87 at the time of writing, data from Cointelegraph Markets Pro and TradingView watch.
This is its highest since January 2021, months before BTC/USD set new all-time highs of $58,000 in April and $69,000 in November.
The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.