The middle of 2019 was a period when Bitcoin had just surged above $10,000 on the back of an influx and the Bitcoin price news showed that this was caused by market FOMO amongst investors. This was also time when analysts thought BTC was on the verge of going parabolic again. And while many think that this will repeat now, some say that Bitcoin may not go parabolic and towards five digits just yet.
After a year of a brutal 80% decline in a period known as the “crypto winter” which brought BTC as low as $3,150, investors were ready to see some sunlight. The 300% pump that took place in only six months was enough to convince investors that Bitcoin was about to wave goodbye to the five digits and the “moon.”
However, BTC tanked and its price fell 50% to a low of $6,400 by December of last year. Since bottoming there, however, the leading cryptocurrency has rallied by over 30% and left emotional investors to once again say that a parabolic move will bring BTC above $100,000 soon. However, Bitcoin may not go parabolic soon – and it is all per a simple analysis of one indicator.
As we can see from the crypto trader Coiner Yadox, Bitcoin’s long-term phases of bull and bear have always been easily defined by the one-week Relative Strength Index (RSI) with readings of under 55 indicating a bear market and readings of above 55 indicating a bull market.
Indeed, as he depicted in the charts, whenever Bitcoin was in a bull market, the RSI stayed above 55, boundinc off this key level on multiple occasions and allowing BTC to set fresh all-time highs.
On the weekly, Bull market are where RSI>55, and Bear Market when RSI<55.
Right now, we are exactly at this crucial line.
Which way ? pic.twitter.com/y5568fDYmS— Coiner-Yadox (@Yodaskk) January 15, 2020
If you are wondering where BTC stands in the crypto news now, we can see that Yadox’s chart illustrates that the latest surge in the Bitcoin market has not been enough to force the cryptocurrency in a bull market on a macro basis.
For BTC to confirm a bull market, the weekly RSI needs to make a close above the key 55 level, which requires further appreciation in the crypto market. So, can BTC do this?
The truth is, Bitcoin may not go full parabolic soon and analysts agree on that. Dave the Wave is one of them, noting that the latest move broke the price of BTC above a key downward channel that has restricted price action for some seven months now.
Breakout of the downward channel, and the buy zone… for now.
Dominant technical pattern for BTC. in the medium term, is now the large symmetrical triangle forming. Expecting price to remain volatile within it for a good part of the year. pic.twitter.com/5tMJ4f8V7r
— dave the wave (@davthewave) January 14, 2020
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