Bitcoin (BTC) braces for a new “big rally” as market strength mirrors post-2018 bear market conditions.
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 a bullish divergence never seen before
With BTC price gains yet to come, Bitcoin bulls are growing more confident despite widespread mistrust about the longevity of the current rally.
For popular trader Crypto Wolf, one key phenomenon now underway sets Bitcoin’s latest rally apart from all others.
RSI, he noted on Jan. 18, had printed a long-awaited bullish divergence on weekly time frames, something that had never happened before.
“BTC printed a rare bullish weekly RSI divergence. It never happened in the history of BTC, a once in a lifetime opportunity,” he said. summarized it’s january 21
RSI is a fundamental indicator used by traders to determine if an asset is overbought or oversold at a given price. The weekly print has been long in the making, with Cointelegraph reporting its arrival in advance late last year.
“The technical data was there, the charts were bottoming out but as usual most were in bearish mode,” Wolf added.
Analyst: “Some consolidation” will precede the rise
With that, Bitcoin is beginning to repeat the type of renaissance last seen at the end of its previous bear market in early 2019.
Related: Dead Cat Bounce? Bitcoin Price Approaches $23,000 at 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 has been repeating the pattern on RSI and Price Action to the bottom of 2019,” he said. saying followers last week.
“On the daily chart, 1. RSI Strong uptrend to overbought zone 2. $BTC had a significant drop before that 3. Flash buyers bought $BTC. A big rally will follow after some consolidation.”
Daily RSI stood at around 87 at the time of writing, data from Cointelegraph Markets Pro and TradingView presented.
This is its highest level 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 here are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
