Bitcoin (BTC) faces another “major rally” as market strength replicates post-2018 bear market conditions.
According to the latest analysis, BTC/USD will continue to climb higher “after some consolidation” thanks to key signals from its relative strength index (RSI).
Bitcoin prints never-before-seen bullish divergence
With BTC price gains still coming, Bitcoin bulls are feeling increasingly confident despite widespread distrust in the longevity of the current rally.
For the popular trader Crypto Wolf, an important phenomenon now underway distinguishes Bitcoin’s latest recovery from all others.
RSI, he noted on Jan. 18, had printed a much-anticipated bullish divergence on weekly timeframes — something that has never happened before.
“BTC printed a rare weekly RSI bullish divergence. Never happened in BTC history, a once in a life opportunity,” he said summarized is Jan. 21.
RSI is a fundamental measure used by traders to determine whether an asset is overbought or oversold at a given price. The weekly print has long been in the works, with Cointelegraph reporting in advance of its arrival late last year.
“The technicalities were there, the charts were screaming down, but as usual the majority were in full bear mode,” added Wolf.
Analyst: “Some consolidation” precedes the 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: Bounce dead cat? Bitcoin price is approaching $23,000 at a new 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 to the bottom of 2019,” he said told followers last week.
“On the daily chart, 1. RSI Strong uptrend to overbought zone 2. $BTC had a significant drop before 3. Sudden buyers bought up $BTC. After some consolidation, a major rally follows.”
The daily RSI stood at nearly 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 hit new all-time highs of $58,000 in April and $69,000 in November.
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