Bitcoin (BTC) is in for another “big rally” as market strength replicates post-2018 bear market conditions.
According to the latest analysis, BTC/USD will continue to head higher “after some consolidation” thanks to key signals from the Relative Strength Index (RSI).
Bitcoin is printing an unprecedented bullish divergence
As BTC price gains keep coming, Bitcoin bulls are feeling increasingly confident despite this widespread mistrust lifetime of the current rally.
For popular trader Crypto Wolf, a key phenomenon now underway sets Bitcoin’s latest resurgence apart from all others.
The RSI, he noted on January 18, has printed a long-awaited bullish divergence on weekly time frames – something that has never happened before.
“BTC has printed a rare weekly bullish RSI divergence. This has never happened in the history of BTC, a once in a lifetime opportunity,” he said in summary on January 21.
The RSI is a basic measure used by traders to determine whether an asset is overbought or oversold at a given price. The weekly has been long in the making with Cointelegraph reporting upon his early arrival at the end of last year.
“There were technicals, the charts were screaming at the bottom, but as usual most were in full bear mode,” Wolf added.
Analyst: “Some consolidation” will precede the rise
Thus, Bitcoin is beginning to repeat the renaissance it last experienced at the end of the previous bear market in early 2019.
Related: Does a dead cat bounce? Bitcoin price nears $23,000 at fresh 5-month high
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 in RSI and Price Action until the bottom of 2019,” he said he said followers last week.
“On the daily chart 1. RSI Strong uptrend to overbought zone 2. $BTC had a significant decline before that 3. Flash buyers bought $BTC. A big rally will follow some consolidation.”
The daily RSI was close to 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 all-time highs of $58,000 in April and $69,000 in November.
The views, thoughts and opinions expressed herein are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.
