Zone exit – The Bitcoin price (BTC). it appears to be stuck somewhere between $21,000 and $22,000. This indicator gives clues about the next movements of the cryptocurrency, after the strong increases of the last few days.
Daily RSI and Bitcoin price: lessons from the past
Bitcoin price rises to $21,518 on Bitfinex today, January 17, 2023. Cryptocurrency it is trading at $21,298 at the time of writing this article. Its price is currently posting a daily gain of nearly 0.50%.
After the recovery from $21,000, is a bullish continuation possible for Bitcoin in the very short term or should the markets expect a sharp correction? Merchant analysis Scott Melkerwhich are based on the value of the RSI on a daily basis provide some answers.
Scott Melker shared a chart showing the recent explosion of this RSI. This leap allowed it to get out of the zone it evolved in for months. Bitcoin’s daily RSI “cools down to just under 90 ” currently.
Scott Melker points out that when this gauge “hit 90 a few times,” the markets were entitled to it a correction, before an upside and a bearish divergence. The last time this RSI hit 90, the price of Bitcoin dropped from $40,000 to $30,000, before climbing back up to $65,000.
Scott Melker also points out that when the daily RSI last crossed that 90 limit – go up to about 94 – the price of Bitcoin then peaked at $20,000 in 2017.
Given the current value of the RSI, if the past scenarios based on this indicator were to be reproduced, the price of Bitcoin could therefore undergo a relatively significant correction at first, sooner significantly exceed the current local maxima.
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The monthly RSI confirms the strength of the recent rally
Scott Melker is not the only trader interested in RSI. the dealer Right Capital also shared his analysis based on this indicator, but on a different time scale. He posted a chart showing Bitcoin’s monthly RSI is currently at ” above the previous bear market area (green) “.
The monthly RSI remained in this zone for most of 2022. According to Rekt Capital, Bitcoin must now transform this area to support “and RSI is doing everything necessary to achieve this.”
In the absence of confirmation of a Flip of this zone, a bullish continuity for the price of Bitcoin therefore remains uncertain at this stage.
Bitcoin price is struggling to break through $21,300-$21,575. The area contains at least three key resistors, which could push the cryptocurrency back below $20,000. Is there a relatively long pause for the bulls after their long run since the start of the year?
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