Veteran crypto analyst Justin Bennett believes that after surviving a sharp price drop earlier in the week, a single statistic could be the key to telling if Bitcoin (BTC) is ready for a breakthrough. As Kriptokoin.com, we are providing the details…
RSI most important technical indicator in the big Bitcoin rally
In a new YouTube post, Bennett stated that Bitcoin’s relative strength, a statistic that analyzes the candle oscillation of the leading crypto over 14 periods, It examines the index (RSI). Examining the chart on the daily timeframe, the expert says that similar price movements have occurred in the summer of 2021 as they did last month:
Recently, we’ve seen the RSI make quite similar moves since roughly $60,000 to $66,000. As can be seen, the data closely match what we witnessed in September. The RSI is currently bouncing off the same level, which was clearly the case when Bitcoin bottomed and then went on a massive rally.
Bennett then examines the two RSI levels from the spring and summer of 2021 and prior to January of this year when BTC was trading at $33,000:
RSI in September It is noteworthy that it has recovered from the level it had achieved after a breakout from the /October 2021 downtrend and the RSI at these lows between May and July 2021 is also very good. It’s close to the lowest we’ve seen in January 2022 at $33,000.
Analyst sees BTC price rising technically
Bennett adds that as he completes his in-depth study, Bitcoin is technically bullish and is waiting to see if buyers are willing to enter the market. Besides, the analyst draws attention to the relationship between the RSI and the hourly chart:
There is a positive divergence in the RSI since February 17, on the hourly chart, the market is making lower lows (LL) while the RSI is trying to make higher lows (HL). starting. On a daily basis, we also have the RSI that I’ve shown bounced for my key level in 2021. There are a few clues pointing to a possible future increase, but buyers should confirm this.
Bitcoin’s close above the trendline of around $38,500 followed by a daily close above $39,600 will provide signals to confirm the bullish move:
Bitcoin (BTC) If it can recapture this zone, I believe we will see an increase towards at least $46,000, if not higher, towards $50,000.
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