The newest push in Bitcoin price by bulls has resulted within the Relative Energy Index, or RSI, reaching full energy.
The generally used trend-strength measuring device hasn’t hit such overbought situations because the June 2019 high. Does this imply that the first-ever cryptocurrency is topping out once more, or is that this simply the beginning of a extra highly effective rally?
Each day Bitcoin RSI Stays Overbought For Longest Stretch Since June 2019 High
Bitcoin price has exploded from lows set on Black Thursday final month, to as excessive as $9,400 on the time of this writing. And with Bitcoin’s halving only one week away, the pattern momentum might solely enhance from right here.
The newest price motion and rally throughout the crypto area, has brought about Bitcoin’s Relative Energy Index to learn the best ranges because the June 2019 high.
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The RSI is used to measure the power of an asset’s pattern. Any exceptionally sturdy deviations to 1 excessive on the RSI, usually suggests an asset has reached overbought or oversold situations.
Bitcoin’s RSI is now signaling the longest stretch of overbought situations since June 2019, even beating out the latest February 2020 high.
That high despatched Bitcoin plummeting to below $4,000.
Does the RSI reaching “full power” in response to one crypto analyst counsel that the rally is coming to an finish, or might it additionally imply that it’s simply getting began?
Relative Energy Index Might Be Indicating A New Crypto Bull Market Is Right here
The RSI reaching such ranges on every day timeframes can also act as a set off for sustained bullish price motion.
Zooming out a bit additional past the June 2019 high, the RSI reveals three distinct peaks that held above overbought situations for prolonged durations.
Every one in every of these peaks didn’t lead to a reversal. On this case, the RSI is exhibiting that the pattern is so sturdy, the upside is prone to proceed.
The every day RSI can keep overextended for sustained durations throughout bull markets. The indicator additionally supplies distinctive studying throughout totally different timeframes.
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For instance, when switching to weekly timeframes, the RSI is nowhere close to overbought situations, signaling that the present rally has loads of room on the weekly to develop.
Moreover, zooming out even additional, reveals that the RSI is extra generally overbought throughout bull markets in Bitcoin. Much more fascinating, every bullish section seems to be triggered by the every Bitcoin halving.
With Bitcoin’s subsequent halving only one week away, and the RSI reaching full energy, it may very well be full steam forward for Bitcoin’s subsequent bull market.
Featured picture from Pixabay, Charts from TradingView