Bitcoin (BTC) is in for a new “big rally” as market strength mirrors the conditions that followed the 2018 bear market.
According to the latest analysis, the BTC/USD pair will continue to rise “following some consolidation” thanks to key signals from its Relative Strength Index (RSI).
Bitcoin prints a bullish divergence never seen before
With BTC price gains yet to come, Bitcoin bulls are growing more confident despite the widespread distrust of longevity of the current upturn.
For popular trader Crypto Wolf, there is one key phenomenon underway that sets Bitcoin’s latest rally apart from all others.
On Jan. 18, he noted that the RSI had printed a long-awaited bullish divergence on weekly timeframes, something that had never happened before.
“BTC printed a rare weekly RSI bullish divergence. It has never happened in BTC history, a once-in-a-lifetime opportunity,” summarized On January 21.
The RSI is a fundamental indicator used by traders to determine if an asset is overbought or oversold at a given price. The weekly print has long been in the making, with Cointelegraph informing of its arrival in advance at the end of last year.
“The technical data was there, the charts pointing to a bottom but, as usual, most were in full bearish mode,” the analyst added.
“A phase of consolidation” is the next thing to this price rise, according to an analyst
With that, Bitcoin is beginning to repeat the type of renaissance last seen at the end of its previous bear market in early 2019.
Trader and analyst “Trader Tardigrade”, also known as Alan on social media, thus predicts that the good times will continue for a while.
“BTC has been repeating the pattern on RSI and Price Action to the bottom of 2019”, said to his followers last week.
“On the daily chart, 1. Strong RSI rally to overbought zone, 2. $BTC had a significant drop before it, 3. Flash buyers piled on $BTC. After this big rally we will see a price consolidation phase” .
The daily RSI was near 87 at press time, according to data from Cointelegraph Markets Pro y TradingView.
This is its highest since January 2021, months before BTC/USD set new all-time highs of $58,000 in April and later at $69,000 in mid-November.
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