{"id":16686,"date":"2023-01-23T22:53:14","date_gmt":"2023-01-24T02:53:14","guid":{"rendered":"https:\/\/cryptocornercafe.com\/cafe\/?p=16686"},"modified":"2023-01-23T22:53:14","modified_gmt":"2023-01-24T02:53:14","slug":"bitcoin-weekly-rsi-reaches-line-between-bear-bull-market","status":"publish","type":"post","link":"http:\/\/cryptocornercafe.com\/cafe\/2023\/01\/23\/bitcoin-weekly-rsi-reaches-line-between-bear-bull-market\/","title":{"rendered":"Bitcoin Weekly RSI Reaches Line Between Bear & Bull Market"},"content":{"rendered":"

Bitcoin price<\/a> continues to push higher, leaving very few pullback opportunities thus far for those that failed to buy below $20,000.<\/p>\n

Price action on BTCUSD the weekly timeframe, according to the Relative Strength Index, has reached a critical line that separates bear market from bull market. Any higher, and crypto could experience a full blown breakout. Let\u2019s take a look.<\/p>\n

What The Relative Strength Tells Us About Cryptocurrencies<\/h2>\n

The Relative Strength Index<\/a> is a popular technical indicator used in cryptocurrencies, originally created by J. Welles Wilder in the 1970s.<\/p>\n

The tool measures momentum through the \u201cvelocity and magnitude of price movements,\u201d according to Wikipedia<\/a>. Readings above 70 can indicate overbought conditions, and falling below 30 suggests an oversold market.<\/p>\n

In rare instances, the RSI will remain overheated depicting an especially powerful trend<\/a>. Most of the time it remains somewhere between 30 and 70 while prices consolidate or move sideways.<\/p>\n

On higher timeframes, moving past the middle-zone on the RSI can send lower timeframes through the roof \u2014 or through the floor.<\/p>\n

In the case of BTCUSD weekly charts, the RSI suggests this exact line in the sand is currently separating what could be a full breakout into a bull market \u2013 or a harsh rejection.<\/p>\n\n

Breaching this level on the RSI led to bullish rallies | BTCUSD on TradingView.com<\/a><\/p>\n

Bitcoin Reaches Critical Line In The Sand Between Bear & Bull Market<\/h2>\n

Looking back throughout the history of Bitcoin, pushing above roughly 55-56 on the RSI<\/a> has in the past led to extraordinarily bullish moves. Falling below it lead to the the deadliest declines and bear markets.<\/p>\n

Even worse, as BTCUSD weekly finds itself at the key trigger level, rejection has resulted in some brutal moves. In 2014 a rejection from there kicked off the second phase of the bear market. In 2015, a bull market attempt was harshly rejected back to bear market lows.<\/p>\n

The latest instance in 2020 a bull market was rejected and combined with the onset of COVID, resulted in the Black Thursday<\/a> collapse. Considering the importance of the level and the fact some of the worst rejections ever have taken place when the RSI reached such a reading, it is no surprise investors remain skeptical and cautious.<\/p>\n

If Bitcoin can make it above the current zone on the Relative Strength Index, the bull market could be back on in a flash. Currently, BTCUSD daily charts show a wildly elevated RSI, well into overbought conditions. However, extended phases of daily RSI levels support bull market behavior<\/a>, and could indicate that the weekly RSI and further higher timeframes might also approach overbought levels at some point in the future.<\/p>\n

Beware of shorting #Bitcoin<\/a> when the RSI is this elevated. pic.twitter.com\/YHus8lR6dG<\/a><\/p>\n

\u2014 Tony “The Bull” (@tonythebullBTC) January 17, 2023<\/a><\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

Bitcoin price<\/a> continues to push higher, leaving very few pullback opportunities thus far for those that failed to buy below $20,000.<\/p>\n

Price action on BTCUSD the weekly timeframe, according to the Relative Strength Index, has reached a critical line that separates bear market from bull market. Any higher, and crypto could experience a full blown breakout. Let\u2019s take a look.<\/p>\n

What The Relative Strength Tells Us About Cryptocurrencies<\/h2>\n

The Relative Strength Index<\/a> is a popular technical indicator used in cryptocurrencies, originally created by J. Welles Wilder in the 1970s.<\/p>\n

The tool measures momentum through the \u201cvelocity and magnitude of price movements,\u201d according to Wikipedia<\/a>. Readings above 70 can indicate overbought conditions, and falling below 30 suggests an oversold market.<\/p>\n

In rare instances, the RSI will remain overheated depicting an especially powerful trend<\/a>. Most of the time it remains somewhere between 30 and 70 while prices consolidate or move sideways.<\/p>\n

On higher timeframes, moving past the middle-zone on the RSI can send lower timeframes through the roof \u2014 or through the floor.<\/p>\n

In the case of BTCUSD weekly charts, the RSI suggests this exact line in the sand is currently separating what could be a full breakout into a bull market \u2013 or a harsh rejection.<\/p>\n

Breaching this level on the RSI led to bullish rallies | BTCUSD on TradingView.com<\/a><\/p>\n

Bitcoin Reaches Critical Line In The Sand Between Bear & Bull Market<\/h2>\n

Looking back throughout the history of Bitcoin, pushing above roughly 55-56 on the RSI<\/a> has in the past led to extraordinarily bullish moves. Falling below it lead to the the deadliest declines and bear markets.<\/p>\n

Even worse, as BTCUSD weekly finds itself at the key trigger level, rejection has resulted in some brutal moves. In 2014 a rejection from there kicked off the second phase of the bear market. In 2015, a bull market attempt was harshly rejected back to bear market lows.<\/p>\n

The latest instance in 2020 a bull market was rejected and combined with the onset of COVID, resulted in the Black Thursday<\/a> collapse. Considering the importance of the level and the fact some of the worst rejections ever have taken place when the RSI reached such a reading, it is no surprise investors remain skeptical and cautious.<\/p>\n

If Bitcoin can make it above the current zone on the Relative Strength Index, the bull market could be back on in a flash. Currently, BTCUSD daily charts show a wildly elevated RSI, well into overbought conditions. However, extended phases of daily RSI levels support bull market behavior<\/a>, and could indicate that the weekly RSI and further higher timeframes might also approach overbought levels at some point in the future.<\/p>\n

Beware of shorting #Bitcoin<\/a> when the RSI is this elevated. pic.twitter.com\/YHus8lR6dG<\/a><\/p>\n

\u2014 Tony “The Bull” (@tonythebullBTC) January 17, 2023<\/a><\/p>\n

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