Glassnode analysts are mentioning one traditionally bullish sign for Bitcoin (BTC) that beforehand prompted explosive rallies for the highest crypto asset by market cap.
Glassnode co-founders Jan Happel and Yann Allemann say that Bitcoin has “crushed” a number of essential resistance ranges and is now at a degree of strengthening momentum.
The analysts zero in on BTC’s relative power index (RSI), which is historically used to gauge an asset’s momentum.
With Bitcoin’s RSI now above the 70 degree, the analysts say that primarily based on historical past, BTC might be on monitor for one more massive transfer to the upside.
“We analyzed our proprietary regime shift and concluded that we had been transitioning from a bearish to a bullish atmosphere. The weekly chart reinforces our view. An extended-term bullish development was confirmed, momentum is build up, and from the appears, it’s solely the start. Discover how the final time RSI crossed 70, bitcoin exploded.
The RSI is now starting to be overbought and will stretch increased towards the 100 mark, as it’s the norm with bullish markets. In different phrases, so long as it sustains the uptrend, the BTC worth could be inclined to preserve the rally intact.”
The analysts additionally warn that BTC is kind of traversing into “uncharted territory” because it begins to flirt with ranges not seen since final 12 months. According to the Glassnode co-founders, BTC could hit the $32,700 degree earlier than persevering with increased.
“We should do not forget that nothing strikes in an up-only method, and we’re, in a method, in uncharted territory. Subsequently, it’s important to outline the essential ranges to determine engaging entry and exit ranges.
Brief-term help is forging round $33,700, with a pivot level at $34,400. Within the mid-term, nonetheless, we may see a retest of the $32,700 – $33,300 degree. Keep in mind that volatility is excessive, in order that we may see wicks under our present help ranges. The BTC bulls nonetheless have a strong near-term technical benefit as a worth uptrend is on the day by day bar chart.”
At time of writing, Bitcoin is buying and selling for $35,142.
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