Bitcoin (BTC) is on its way to a new “big bull” as market strength mimics conditions after the 2018 bear market.
According to the latest analysis, the BTC/USD pair will continue to rise “after some consolidation” thanks to key signals from the Relative Strength Index (RSI).
Bitcoin is printing an unprecedented bullish divergence
As the price of BTC continues to rise, the bitcoin bulls are feeling increasingly confident despite widespread doubts about the longevity of the current rally.
For popular trader Crypto Wolf, there is a major phenomenon underway right now that sets Bitcoin’s recent rally apart from others.
It indicated that on the 18th of January the RSI printed a long awaited bullish divergence on the weekly timeframes – something that had not happened before.
BTC printed a rare weekly bullish divergence on the RSI. Never in the history of BTC, this is a once in a lifetime opportunity.” summary him on January 21st.
The RSI is a basic measure that traders use to determine whether an asset is overbought or oversold at a particular price. The weekly edition has been a long time in the making, with Cointelegraph reporting its arrival in advance at the end of last year.
“The technicians were there, the charts were rock bottom, but as usual most of them were in a bearish mode,” Wolf added.
Analyst: “Some consolidation” will precede the rally
With that, Bitcoin is starting to repeat the kind of revival last seen at the end of its previous bear market in early 2019.
Thus, trader and analyst Trader Tardigrade, also known as Alan on social media, predicts that the good times will continue for a while.
“BTC is repeating the pattern on the RSI and price action until the 2019 low,” He said He to his followers last week.
“On the daily chart, 1. Strong RSI bullish trend into overbought territory 2. BTC saw a big drop before that 3. Surprise buyers bought $BTC. A big rally will happen after some consolidation.”
Data from Cointelegraph Markets Pro and TradingView showed that the daily RSI was near 87 at the time of writing.
This is the highest level since January 2021, months before the BTC/USD pair hit all-time highs of $58,000 in April and $69,000 in November.
The views, ideas and opinions expressed herein are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph Brasil.