Bitcoin due new 'big rally' as RSI copies
2018 bear market recovery
Bitcoin $22,613 is in for a new “big rally” as market strength copies conditions from after the
2018 bear market.
According to the latest analysis, BTC/USD will continue to head higher “after
some consolidation” thanks to key signals from its relative strength index (RSI).
Bitcoin prints never-before-seen bullish divergence
With the BTC price gains still coming, Bitcoin bulls are feeling increasingly
confident despite widespread mistrust of the longevity of the current rally.
For popular trader Crypto Wolf, a key phenomenon now underway 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 which has never happened before.
“BTC printed a rare weekly RSI bullish divergence. Never happened in BTC history,
a once in a life opportunity,” he summarized on Jan. 21.
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 long in the
making, with Cointelegraph reporting on its arrival in advance at the end of last
year.
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“Technicals were there, charts were screaming bottom but as usual majority was
in full bear mode,” Wolf added.
Analyst: "Some consolidation" will precede upside
With that, Bitcoin is beginning to repeat the kind of renaissance last seen at the
end of its previous bear market in early 2019.
Related: Dead cat bounce? Bitcoin price nears $23,000 in fresh 5-month high
Trader and analyst Trader Tardigrade, also known as Alan on social media, thus
predicts that the good times will continue for a while to come.
“BTC has been repeating the pattern in RSI and Price Action to 2019 bottom,” he
told followers last week.
“On daily chart, 1. RSI Strong uptrend to overbought zone 2. $BTC had a significant drop before
that 3. Sudden buyers bought up $BTC. Big rally will be following after some consolidation.”
Daily RSI stood at near 87 at the time of writing, Data from Cointelegraph Markets
Pro and TradingView showed.
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.