Bitcoin price upsurge as RSI matches 2018 market trend
Bitcoin is poised for significant growth in the market as conditions replicate those seen after the hard-hitting bear market of 2018.
Drawing from the newest study, BTC/USD looks set to advance with its Relative Strength Index suggesting a bullish outlook following a brief amount of adjustment.
According to crypto dealer Crypto Wolf, $BTC yielded an unusual bullish discrepancy on its weekly Relative Strength Index. He added this had yet to occur formerly in bitcoin’s chronicle. “The technicals were present, and graphs showed a flooring, yet as always, most people were staunchly bearish.”
$BTC printed a rare weekly RSI bullish divergence. Never happened in $BTC history, a once in a life opportunity.
Technicals were there, charts were screaming bottom but as usual majority was in full bear mode.
— Wolf (@IamCryptoWolf) January 21, 2023
The RSI is a widely used technical analysis tool that determines overbought and oversold conditions based on an asset’s price movement.
If the RSI is above 70, the asset has been overbought and is likely to correct downwards. If the RSI is below 30, it suggests that the asset has been oversold and is expected to correct upwards.
BTC reveals a sign of consolidation
Bitcoin is beginning to repeat the kind of renaissance last seen at the end of its previous bear market in early 2019.
Source: Trading view
The RSI is 87, indicating that it is overbought and may soon enter a correction phase. This should present an opportunity for investors to get in on the ground floor of what could be a new bull run for Bitcoin.
For a considerable length of time, experts have been anticipating such activity, and with the RSI affirming its legitimacy, it had achieved its most elevated level since the start of 2021, long before BTC/USD touched new highs of $58,000 (April) and $69,000 (November).
So far, the RSI mirrors the trend seen in 2018 when bitcoin experienced a sharp bear market. This could be an indication that we are on the cusp of a new bull run, and investors should take advantage of this trend while it lasts.