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

Bitcoin (BTC) 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.

“Technicals were there, charts were screaming bottom but as usual majority was in full bear mode,” Wolf added.

BTC/USD 1-week candle chart (Bitstamp) with RSI. Source: TradingView

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.”

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

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.

BTC/USD 1-day candle chart (Bitstamp) with RSI. Source: TradingView

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

All Dutch and English crypto news!

‘Haunts me to this day’ — Crypto project hacked for $4M in a hotel lobby

The co-founder of Web3 metaverse game engine "Webaverse" has revealed they were victims of a $4 million crypto h after meeting with scammers posing as...

Crypto firms could face 2 years jail for breaching UK advertising laws

Newly proposed advertising rules in the United Kingdom could potentially see executives of crypto firms face up to two years of prison for failing to...

Sam Bankman-Fried lawyers reach agreement on use of messaging apps

Sam Bankman-Fried's (SBF's) lawyers have reached an agreement with federal prosecutors concerning his use of messaging apps. According to a Feb. 6 court document, both parties...

Genesis entity going up for sale as DCG makes creditor pact

Genesis Global has announced it has reached an "agreement in principle" with Digital Currency Group (DCG) which will eventually see its crypto lending and trading...

Beste exchanges

Koop je crypto bij Bitvavo