This Bullish Bitcoin Technical Signal Suggests The Bottom Is In

0 6

Bitcoin price is currently trading at $28,000 only a week after retesting below $20,000 – potentially leaving that price range behind forever.

The powerful, more than 30% one-week rally has brought the top cryptocurrency to a bullish technical level that in the past only was reached after a bear market bottom was put in.

Bitcoin Shows Sudden Strength Amid Banking Sector Crisis

After gradually building a potential base following the FTX collapse, Bitcoin is suddenly showing serious strength compared to the rest of the financial world. It is even outperforming altcoins, in the face of a brand new narrative: BTC versus banks. The banking sector is in crisis, but this is what Bitcoin was built for.

Since the situation started, the top cryptocurrency by market cap is up more than 30% – and it only took a week to get there. The sudden strength has caused BTCUSD to pass a crucial level of on the Relative Strength Index. Breaking back above the level in the past always put in the bottom in hindsight.

BTCUSD 2W RSI Gives Signal That Ends The Bear Market

According to the chart pictured below, BTCUSD 2-week RSI has reached a reading above 54, passing above the mid-point of the technical indicator. The Relative Strength Index is a momentum oscillator used to tell traders if an asset is overbought or oversold. Readings above 70 indicate overbought conditions, while readings below 30 suggest the market is oversold.

More importantly to this chart, price action passing above the middle-point of the RSI at a reading of 50 suggests that momentum is increasing. In Bitcoin and other cryptocurrencies, once trending, the RSI can stay elevated for extended periods, or repeatedly push into overbought conditions without a major, trend-altering correction. That signal is now back, and in the next section we’ll more closely examine what that means.

bitcoin RSI bottom is in

knife

Why An Extended Rally Is Likely Above This Key Level

In the chart above, each time 50 on the 2-week Relative Strength Index was broken through from below, it signaled the end of the bear market in crypto and an extended rally in Bitcoin.

The first signal in 2012 resulted in 18,000% ROI after the RSI passed above 50. The second in the series in 2015 added another 6,000% to the signal’s success rate. The third in 2019 did 600% after the signal appeared. What will it do in 2023?

Leave A Reply

Your email address will not be published.

bitcoin
Bitcoin (BTC) $ 70,785.97
ethereum
Ethereum (ETH) $ 3,572.19
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 583.66
solana
Solana (SOL) $ 186.77
xrp
XRP (XRP) $ 0.629922
staked-ether
Lido Staked Ether (STETH) $ 3,563.99
usd-coin
USDC (USDC) $ 1.00
dogecoin
Dogecoin (DOGE) $ 0.221442
cardano
Cardano (ADA) $ 0.653483
avalanche-2
Avalanche (AVAX) $ 54.71
shiba-inu
Shiba Inu (SHIB) $ 0.000032
the-open-network
Toncoin (TON) $ 4.89
polkadot
Polkadot (DOT) $ 9.50
bitcoin-cash
Bitcoin Cash (BCH) $ 575.14
chainlink
Chainlink (LINK) $ 19.26
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 70,786.97
tron
TRON (TRX) $ 0.120401
uniswap
Uniswap (UNI) $ 12.72
matic-network
Polygon (MATIC) $ 1.00
internet-computer
Internet Computer (ICP) $ 17.62
near
NEAR Protocol (NEAR) $ 7.22
litecoin
Litecoin (LTC) $ 94.48
aptos
Aptos (APT) $ 17.12
leo-token
LEO Token (LEO) $ 6.05
blockstack
Stacks (STX) $ 3.43
filecoin
Filecoin (FIL) $ 9.24
dai
Dai (DAI) $ 0.999106
cosmos
Cosmos Hub (ATOM) $ 12.29
ethereum-classic
Ethereum Classic (ETC) $ 32.52
arbitrum
Arbitrum (ARB) $ 1.68
render-token
Render (RNDR) $ 11.29
immutable-x
Immutable (IMX) $ 2.96
crypto-com-chain
Cronos (CRO) $ 0.153947
stellar
Stellar (XLM) $ 0.137996
hedera-hashgraph
Hedera (HBAR) $ 0.117027
the-graph
The Graph (GRT) $ 0.416047
mantle
Mantle (MNT) $ 1.21
okb
OKB (OKB) $ 63.20
optimism
Optimism (OP) $ 3.71
fetch-ai
Fetch.ai (FET) $ 3.42
bittensor
Bittensor (TAO) $ 550.57
dogwifcoin
dogwifhat (WIF) $ 3.47
vechain
VeChain (VET) $ 0.046742
pepe
Pepe (PEPE) $ 0.000008
injective-protocol
Injective (INJ) $ 38.01
maker
Maker (MKR) $ 3,603.72
kaspa
Kaspa (KAS) $ 0.137723
thorchain
THORChain (RUNE) $ 9.34
theta-token
Theta Network (THETA) $ 2.93
fantom
Fantom (FTM) $ 1.01
arweave
Arweave (AR) $ 41.51
lido-dao
Lido DAO (LDO) $ 2.90
floki
FLOKI (FLOKI) $ 0.000264
first-digital-usd
First Digital USD (FDUSD) $ 1.00
gala
GALA (GALA) $ 0.066937
sui
Sui (SUI) $ 2.00
monero
Monero (XMR) $ 135.49
celestia
Celestia (TIA) $ 14.14
sei-network
Sei (SEI) $ 0.86785
algorand
Algorand (ALGO) $ 0.273138
rocket-pool-eth
Rocket Pool ETH (RETH) $ 3,936.65
flow
Flow (FLOW) $ 1.39
quant-network
Quant (QNT) $ 138.66
mantle-staked-ether
Mantle Staked Ether (METH) $ 3,624.68
beam-2
Beam (BEAM) $ 0.036211
aave
Aave (AAVE) $ 126.79
singularitynet
SingularityNET (AGIX) $ 1.42
bonk
Bonk (BONK) $ 0.000028
conflux-token
Conflux (CFX) $ 0.477584
bitcoin-sv
Bitcoin SV (BSV) $ 92.23
wrapped-eeth
Wrapped eETH (WEETH) $ 3,694.95
jupiter-exchange-solana
Jupiter (JUP) $ 1.27
starknet
Starknet (STRK) $ 2.29
elrond-erd-2
MultiversX (EGLD) $ 61.17
havven
Synthetix Network (SNX) $ 4.93
dydx-chain
dYdX (DYDX) $ 3.47
axie-infinity
Axie Infinity (AXS) $ 11.19
the-sandbox
The Sandbox (SAND) $ 0.690246
ribbon-finance
Ribbon Finance (RBN) $ 1.62
bittorrent
BitTorrent (BTT) $ 0.000002
bitget-token
Bitget Token (BGB) $ 1.03
ether-fi-staked-eth
ether.fi Staked ETH (EETH) $ 3,584.09
ethena-usde
Ethena USDe (USDE) $ 1.00
worldcoin-wld
Worldcoin (WLD) $ 8.45
tezos
Tezos (XTZ) $ 1.40
mina-protocol
Mina Protocol (MINA) $ 1.26
ondo-finance
Ondo (ONDO) $ 0.929771
pyth-network
Pyth Network (PYTH) $ 0.904972
flare-networks
Flare (FLR) $ 0.035612
ordinals
ORDI (ORDI) $ 62.32
ecash
eCash (XEC) $ 0.000066
gatechain-token
Gate (GT) $ 9.74
ronin
Ronin (RON) $ 4.20
apecoin
ApeCoin (APE) $ 2.03
axelar
Axelar (AXL) $ 2.08
chiliz
Chiliz (CHZ) $ 0.14278
decentraland
Decentraland (MANA) $ 0.674839
akash-network
Akash Network (AKT) $ 5.34
whitebit
WhiteBIT Coin (WBT) $ 8.41