There is a lot to be optimistic about when it comes to more Bitcoin (BTC) price gains, RSI analysis has concluded. Bitcoin is in for a new ‘big rally’ as market strength seems to copy conditions from after the 2018 crypto winter.
Based on the latest analysis, BTC price will continue to move higher“after some consolidation” thanks to critical signals from its relative strength index (RSI).
Bitcoin Price Publishes Never-Seen-Before Bullish Divergence
With the price of bitcoin still gaining, Bitcoin bulls are feeling majorly confident despite lots of mistrust of the longevity of the current rally.
For the popular trader Crypto Wolf, a crucial phenomenon now underway sets Bitcoin’s latest recovery apart from all the others.
RSI, he said on January 18, had printed a long-awaited bullish divergence on the weekly charts – something that has never occurred previously. He summarized on January 21:
“BTC printed a rare weekly RSI bullish divergence. Never happened in BTC history, a once-in-a-lifetime opportunity.”
RSI is an important 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 reporters highlighting its arrival in advance at the end of 2022.
Wolf added:
“Technicals were there, charts were screaming bottom but as usual majority was in full bear mode.”
Some Consolidation Will Precede Upside – Analyst
With that in mind, Bitcoin is starting to repeat the kind of renaissance that was last seen at the end of its previous bear market in early 2019.
Trader and analyst Trader Tardigrade, also called Alan on social media, now projects that the good times will continue for a while to come. He told followers last week:
“BTC has been repeating the pattern in RSI and Price Action to 2019 bottom.”
“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. A big rally will be following after some consolidation.”
Daily RSI stood at around 87 at the time of publication as highlighted by data from TradingView.
That is the highest since January 2021, months before Bitcoin set new all-time highs of $58,000 in April and then $69,000 in November.
