Veteran crypto analyst Justin Bennett believes that after surviving a sharp price drop earlier in the week, a single statistic could be the key to telling if Bitcoin (BTC) is ready for a breakthrough. cryptocoin.com We provide details as…
RSI is the most important technical indicator in the big Bitcoin rally
In a new YouTube post, Bennett examines Bitcoin’s relative strength index (RSI), a statistic that analyzes the candlestick swing of the leading crypto over 14 periods. Examining the chart on the daily time frame, the expert says that similar price movements occurred in the summer of 2021, as in the previous month:
Recently, we’ve seen the RSI make pretty similar moves since roughly $60,000 to $66,000. As can be seen, the data closely match what we witnessed in September. The RSI is currently bouncing off the same level, which was clearly the case when Bitcoin bottomed and then went on a massive rally.
Bennett then examines the two RSI levels from the spring and summer of 2021 and prior to January of this year when BTC was trading at $33,000:
It is worth noting that the RSI is recovering from the level it had after a breakout from the September/October 2021 downtrend and the RSI at these lows between May and July 2021 is also very good. It’s close to the lowest we’ve seen in January 2022 at $33,000.
Analyst sees BTC price technically bullish
Bennett adds that as he completes his in-depth study, Bitcoin is technically bullish and he is waiting to see if buyers are willing to enter the market. Besides, the analyst draws attention to the relationship between the RSI and the hourly chart:
There is a positive divergence in the RSI because on the hourly chart from February 17, the RSI starts making higher lows (HL) while the market is making lower lows (LL). On a daily basis, we also have the RSI that I’ve shown bounced for my key level in 2021. There are a few clues pointing to a possible future increase, but buyers should confirm this.
Bitcoin’s close above the trendline of around $38,500 followed by a daily close above $39,600 would provide signals to confirm the rise:
If Bitcoin (BTC) is able to recapture this zone, I believe we will see an increase, if not higher, towards $50,000 at least close to $46,000.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Disclaimer: The articles and articles on Kriptokoin.com do not constitute investment advice. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, asset or service in this article.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.