Has Bitcoin’s RSI finally broken out?

The price of bitcoin has been rising steadily over the previous month.
There have been certain signals in the previous few days that could indicate a turnaround in the price of Bitcoin’s trajectory.

The RSI (Relative Strength Index) has broken the trend of the previous months, which is the most visible sign.

This indicator reached a recent high of 78 points on October 20, 2021, when Bitcoin was heavily overbought.

Since then, this indicator has been on a long downward trend, reaching its lowest point in recent months on January 22nd, at 20, indicating that it is heavily oversold.

A trend reversal appears to have been started for this indicator starting on 21 January, as it initially returned over the overbought mark on 25 January, and then surged up to nearly 42 on 1 February.

Between yesterday and today, it recovered to 40 after a slight and brief drop.

This week’s price support around $37,000 would have allowed the RSI index to begin moving away from the bearish pattern of the previous few months.

The price movement of BTC has not yet totally exited the negative phase, according to well-known trader and analyst Crypto Ed, but we are beginning to see the end even in the short term.

The yield on US government bonds is very high.

Another interesting clue is that today, in contrast to recent days, the price of Bitcoin did not decline in response to a drop in the yield on 10-year US government bonds (US10Y), but instead soared by 1.5 percent.

Above all, when the US10Y fell in January, the price of BTC often fell alongside it, nearly at the same moment, likely because the drop in the US10Y to still-low levels implied a risk-free environment.

Furthermore, the Dollar Index (DXY) rose today, and the price of Bitcoin typically falls in similar situations.

Stock market losses in the United States

Furthermore, the US stock exchanges suffered substantial losses yesterday, with the Meta (previously Facebook) stock falling 26% in one day. With the US stock exchanges closed, the price of Bitcoin not only held up admirably in a setting that may appear to be a flight from danger, but it also surged to levels seen two days before.

Finally, it’s worth noting that during the previous cycle, the lowest price during this phase was reached on February 6, 2018, followed by a significant comeback the next day.

ew

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

Leave a Comment

Your email address will not be published. Required fields are marked *

Facebook
Twitter
Telegram

Recent Posts

Follow Us