The latest rally in Bitcoin has caused the Relative Strength Index to reach shocking highs. Such a reading would typically indicate a pullback is due, however, it can also be a signal that the bull market is back in full force.
Comparing the RSI to past Bitcoin bear and bull cycles, provides clues as to what may happen next for Bitcoin price, as the asset inches ever closer to its block reward halving.
Bitcoin Price RSI Reaches Insanely Overbought Conditions Following Latest Rally
After a chaotic collapse in mid-March on a day now known as Black Thursday, Bitcoin plummeted to under $4,000.
The drop caused shock and awe across the crypto space, as the record-breaking collapse wiped out all of 2020’s gains and then some.
Once the low was hit, Bitcoin price has been on a strong and steady rise ever since. The first-ever cryptocurrency is up nearly 150% from the lows, rocketing to over $9,400 in an overnight push last night.
The explosive rally has caused the RSI to reach the highest level since the June 2019 top when Bitcoin reached $14,000.
Such an overbought reading on the technical analysis indicator created by J. Welles Wilder Jr. who also created the Parabolic SAR, and Average Directional Index, would normally suggest a pullback or reversal is due.
But when it comes to Bitcoin, RSI readings that high may be a sign the bull market is back.
Relative Strength Index Remains Overbought in Bull Markets
The Relative Strength Index – or RSI for short – is a momentum indicator that measures the strength of price action, letting analysts understand when assets become highly overbought or oversold.
The indicator provides a visual representation on a line chart that oscillates back and forth. When an asset reaches 70, it is considered overbought, and 30 represents oversold levels.
Traders can adjust this according to risk appetite, but the idea remains the same: any extreme deviations above 70 or below 30 mean a change in direction is likely.
Related Reading | Bitcoin Price Sets Longest Stretch of Positive Weekly Growth Since May 2017
But when it comes to Bitcoin during a bull market, the RSI can reach wild extremes, and the price can keep rising for a lot longer than expected.
In the chart above, each red verticle line represents a large spike in RSI during a bull market. Notice how each peak in RSI rises far above the 70 mark, and oftentimes, the price keeps on rising, even if the RSI is dropping.
RSI peaking ahead of the price of an asset often signals a divergence and is a more accurate sign of a reversal during a bull market than simply reaching overbought conditions.
At the top of the 2017 bull market, RSI peaked ahead of the $20,000 top, and RSI never reached that high again, until the 2019 June top, and again now. Is the bull market truly back for Bitcoin? origin »
A crypto analyst has shared a TD Sequential chart indicating that the Bitcoin price is flashing a major buy signal in the 4-hour time frame. This signal suggests that Bitcoin’s bearish momentum could be waning, making this a potentially critical moment to consider entering the market.
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Bitcoin's second attempt at making it past $40,000 failed last week, with all eyes now on the cryptocurrency's next big move. Interestingly, while BTC was trading at $34,855 at press time, outflows frThe post Bitcoin: This may be the strongest bullish signal in 3 weeks appeared first on AMBCrypto.
Bitcoin has been in a strong rally since the March lows. The coin moved from $3,500 at those lows to around $12,500 at the local highs. Unfortunately for bulls, a crucial sell signal is on the verge of appearing that may mark a medium-term top for Bitcoin.
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It now appears that Bitcoin’s recent surge from lows of roughly $10,000 to highs of over $10,500 was simply a flash in the pan, as BTC has now erased nearly all of the gains it incurred during this movement.
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Bitcoin and the aggregated crypto markets have been caught in the throes of volatility as of late, and although this volatility has mostly proven to be bullish for Bitcoin, it has largely been devastating for altcoins like Ethereum.
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While 2018 was most certainly a bear market for Bitcoin and crypto assets, 2019 has been mostly a bull market or at least the beginning stages of one. The latest in the growing list of signs the leading crypto asset by market cap is building a bullish foundation and will rise to new all-time highs,.
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Reports show a decrease in the outflow from BitMEX that likely signal an end to the week-long panic from users of the bitcoin exchange. Meanwhile, the Seychelles-based platform is being accused of contributing to the shrinking BTC trading volume following massive liquidation of both short and long positions.
Bitcoin Sees Bull Market Sign Despite the fact that Bitcoin (BTC) has just slipped under $10,000 for the umpteenth time in a matter of a few weeks, the cryptocurrency recently saw yet another bullish indicator...
Bitcoin Bulls Ready to Run Bitcoin (BTC) bulls are poised to break out of the gates. As noted by prominent analyst Joe McCann, the one-day Moving Average Convergence Divergence (MACD), an indicator meant to determine.
On the upside, if the bulls break above the EMAs, the crypto's price will arise and retest the $240 overhead resistance. The BSV market is in a bullush momentum and a buy signal BSV /USD Medium-term Trend: Bearish Resistance Levels: $250, $275, $300 Support Levels: $225, $200, $175 Yesterday, July 17, the price of BSV […]
Bitcoin price continued its plunge below $10,000 on Wednesday, touching $9,274 on Coinbase. The fall marks a 32 percent pullback from the year’s high. For many analysts, the move below $10k is a bearish sign with further drops on the horizon.
Bitcoin (BTC) has undoubtedly been trading in a parabolic pattern since bottoming in December at $3,150. The past few months have seen the cryptocurrency market absolutely explode, posting new highs every other week.
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The president of the United States, Donald J. Trump voiced his opposition for cryptocurrency, with main focus on bitcoin and Libra via a thread of tweets on Friday morning (Asian time). This is the first time that the ‘most powerful man’ on earth made public comments regarding the cryptocurrency space.
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Bitcoin may have recovered and traded above $11,200 which depicted a bullish signal, however, some cryptocurrency analysts are still expecting a significant dump in price. An instance is Tone Vays who in a tweet on July 5, 2019, said Bitcoin is yet to surge past a Resistance zone of $12,250 – $12,500, therefore, there is […]
The post Market Update: Bitcoin Fails to Trade Above $12,000, Analysts Predict Dump to $9k appeared first on ZyCrypto.
It seems as though base building and bullish trend reversal are complete for bitcoin as it is steadily gaining lost ground. The ‘crypto king’ even briefly touched $12,000 before a slight correction.
After experiencing a bout of downwards pressure that had erased many of the gains that Bitcoin and the aggregated crypto markets had incurred as of late, BTC’s bulls once again came out swinging and propelled the cryptocurrency significantly higher.
Bitcoin SV Price Analysis (BSV/USD) BSV/USD pair has exhibited a bullish outlook in the last 24hrs. The ascending channels reflected the upward price rally. The 7 day MA that was seen gravitating above the 21 day MA that indicated a bullish signal.
China, despite their hardliner stance against Bitcoin (BTC) and crypto trading, is an important player. Their position however is gradually evolving.
The post Bullish Signal: Chinese Government View of Bitcoin (BTC) Evolving appeared first on Ethereum World News.
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By CCN: The frequently volatile stock market provides rare hideouts for investors but one of them could be bitcoin, according to Mr. Peter Boockvar of Bleakley Advisory Group. The chief investment officer said this week that a sharp rise in bitcoin price indicated that investors were unsure about the Federal Reserve’s stance on interest rate cuts, as well as about the outcome of an ongoing trade war between the US and China that kept buying sentiment weaker in both the Western and Asian stock markets.
In CNBC’s Future’s Now “Search for Safety” episode on June 4, 2019, CNBC’s reporter pointed out that Peter Boockvar, Chief Investment Officer at Bleakley Adviser Group is of the opinion that Bitcoin is a good place for investors to hide.
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Биткоин пробил важнейший уровень сопротивления на отметке в $105 000 30 января, в то время как все альткоины все еще находятся в глубокой коррекции. Динамика цены BTC парирует негативные настроения, вызванные ФРС и DeepSeek Ориентируясь на данные TradingView, можно увидеть, что пара BTC/USD достигла отметки в $105 563 на бирже Bitstamp, перебив шестидневный максимум. Затмевая […]
Bitcoin stands at a critical crossroads, with its price hovering near the crucial $93,257 support level. This key price point has acted as a stronghold for the cryptocurrency during its recent ascent, but now, the market is facing mounting pressure.
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Popular cryptocurrency expert and trader Javon Marks has made a daring forecast that contradicts the current mood of the Bitcoin market, predicting that the crypto asset will make a significant comeback to the pivotal $72,000 level.