Home » Bitcoin due new ‘big rally’ as RSI copies 2018 bear market recovery

Bitcoin due new ‘big rally’ as RSI copies 2018 bear market recovery

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Bitcoin (Bitcoin), with market strength mimicking what happened after the bear market in 2018, a new “great rally” is on the horizon.

According to the latest analysis, BTC/USD will continue to move higher “after some consolidation” thanks to a significant signal from its Relative Strength Index (RSI).

Bitcoin Shows Unprecedented Bullish Divergence

Bitcoin bulls are getting more and more confident as the BTC price continues to rise. Widespread mistrust of the current Larry’s longevity.

For popular trader Crypto Wolf, a major ongoing phenomenon sets Bitcoin’s latest recovery apart from all others.

He noted that on Jan. 18, the RSI showed a long-awaited bullish divergence on the weekly timeframe. This is unprecedented.

“BTC printed a rare weekly RSI bullish divergence, a once-in-a-lifetime opportunity that has never happened in BTC history,” he said. wrap up January 21st.

RSI is the basic indicator traders use to determine if an asset is overbought or oversold at a particular price.The weekly print has been produced for a long time with Cointelegraph report When we arrived in advance late last year.

“The technicals were there, the charts were bottoming out, but as usual, we were in full bearish mode for the most part,” Wolff added.

BTC/USD 1-week candlestick chart (Bitstamp) and RSI.Source: Trading View

Analyst: ‘Some correction’ precedes upwards

With this, 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 bounce?Bitcoin price approaches $23,000 for 5-month high

Trader and analyst Tardigrade, also known as Alan on social media, predicts that the boom will continue for some time.

“BTC has repeated the pattern of RSI and price action all the way to the bottom of 2019,” he said. Said Followers from last week.

“On the daily chart, 1. RSI is in a strong uptrend into the overbought zone 2. $BTC had a big drop before that 3. Sudden buyers have bought up $BTC. After that, there will be a big uptick.”

BTC/USD annotated chart. Source: Trader Tardigrade/Twitter

The daily RSI was standing near 87 at the time of writing. Cointelegraph Market Pro When TradingView Indicated.

This is the highest since January 2021, months before BTC/USD set new highs of $58,000 in April and $69,000 in November.

BTC/USD 1-day candlestick chart (Bitstamp) and RSI.Source: Trading View

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