Bitcoin due for new ‘huge rally’ as RSI copies 2018 bear market recovery
Bitcoin (BTC) is in for another “major rally” as market strength replicates conditions from the post-bear market of 2018.
According to the latest analysis, BTC/USD will continue to move higher “after some consolidation” thanks to key signals from its Relative Strength Index (RSI).
Bitcoin prints bullish divergence never seen before
With the BTC price gains still coming, Bitcoin bulls are feeling increasingly confident despite widespread skepticism about the duration of the current rally.
For popular trader Crypto Wolf, a key phenomenon now sets Bitcoin’s recent recovery apart from all others.
The RSI, he noted on January 18, had posted a long-awaited bullish divergence on weekly time frames – something that has never happened before.
“BTC printed a rare weekly RSI bullish divergence. Never happened in BTC history, once in a lifetime opportunity,” he in summary on 21 January.
The RSI is a basic 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 at the end of last year.
“Technology was there, charts were screaming bottoms, but as usual the majority was in full bear mode,” Wolf added.
Analyst: “Some consolidation” will precede the upside
With that, Bitcoin is beginning to repeat the kind of renaissance last seen at the end of the previous bear market in early 2019.
Related: Dead Cat Bouncing? Bitcoin price approaches $23,000 at 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 some time to come.
“BTC has repeated the pattern in the RSI and Price Action to the 2019 bottom,” he told followers last week.
“On the 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 follow after some consolidation.”
The daily RSI stood near 87 at the time of writing, data from Cointelegraph Markets Pro and TradingView showed.
This is the highest since January 2021, months before BTC/USD set new records 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.
