Bitcoin seems to be showing similarities to an aspect of its 2017 bull market hinting at a significant breakout if specific Relative Strength Index (RSI) trends continue. With a price of $69,053 Bitcoin could be gearing up for a movement once it reaches the $75,000 threshold as, per analysis conducted by a well known trader.

The comparison between how Bitcoin’s behaving in the market and the early phases of the 2017 bull run is capturing the interest of both traders and analysts. Despite variations in the timing of all time highs and block subsidy halvings between the 2024 cycle and previous cycles data indicates that Bitcoin might still be heading towards growth.

One critical indicator under observation is the Relative Strength Index (RSI) which gauges an assets levels of being overbought or oversold. Analysis on timeframes suggests that Bitcoins RSI is displaying patterns of those seen in early 2017.

As mentioned by trader Jelle, Bitcoins path mirrors that followed during the 2017 bull run. By comparing how BTC/USD performed leading up to its peak at $20,000 in 2017 with its journey from January 2023 till now Jelle points out a similarity in RSI decline and price acceleration, towards highs.

Jelle proposes that this particular trend might signal a “hidden divergence” and foresees volatile market conditions, near previous record highs before a potential breakout.

However there are views on the short term direction of Bitcoin. Despite the news of approval for exchange traded funds (ETFs) in the United States both Bitcoin and Ethereum have not seen significant price surges. The BTC/USD pair is currently trading within a range with some experts forecasting a drop to $60,000 or below.

Renowned trader Credible Crypto and Michaël van de Poppe, CEO of MNTrading are among those expecting a consolidation phase for Bitcoin with the latter proposing a range between $61,000 and $63,000 in the term.

With uncertainties persisting in the market attention is focused on Bitcoins Relative Strength Index (RSI) and its potential impact, on price movements.

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Filed under: Bitcoin - @ May 25, 2024 10:07 am