Bitcoin (BTC) is in a new “big rally” as market strength replicates the situation after the 2018 bear market.
According to the latest analysis, BTC/USD will continue to rise “after some consolidation” due to key signals from the relative strength index (RSI).
Bitcoin prints a never-before-seen bullish divergence
With the price of BTC still holding steady, Bitcoin bulls are feeling more confident even if they don’t believe in the longevity of the current rally.
For the popular trader Crypto Wolf, the key phenomenon currently taking place is making Bitcoin’s latest recovery stand out from all the others.
The RSI, he noted on January 18, has printed the long-awaited bullish divergence on the weekly timeframe – something that has never happened before.
“BTC prints rare weekly RSI bullish divergence. Never happened in BTC history, once in a lifetime opportunity,” he said summarized it’s Jan. 21.
RSI is a basic measure used by traders to determine whether an asset is overbought or oversold at a particular price. The weekly edition has been a long time in the making, with Cointelegraph reporting on its earlier arrival at the end of last year.
“The technicals are there, the charts are screaming at the bottom but as usual the majority are in full bear mode,” added Wolf.
Analyst: “Some consolidation” will precede the rise
With that, Bitcoin began to repeat the kind of renaissance that was last seen at the end of the previous bear market in early 2019.
Related: Dead cats bounce? Bitcoin price nears $23,000 at fresh 5-month high
Trader and Analyst Trader Tardigrade, also known as Alan on social media, thus predicts that the good times will continue for as long as they come.
“BTC has repeated the pattern in RSI and Price Action for 2019 bottom,” he said toward followers last week.
“On the daily chart, 1. Strong RSI Uptrend for overbought zone 2. $BTC had a significant decline before 3. Buyers suddenly bought $BTC. A big rally will follow after some consolidation.
The daily RSI stands near 87 at the time of writing, Data from Cointelegraph Markets Pro and TradingView show.
This is the highest since January 2021, a few months before BTC/USD set all-time highs of $58,000 in April and $69,000 in November.
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