Crypto Analyst: Bitcoin Indicator Resembles Mid-2016 Bullish Beginnings

Tony "The Bull" Severino

5 years ago

3 mins read

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Much of the crypto market may have flipped sentiment to being bearish on Bitcoin after yesterday’s dump that bled out over $20 billion from the total crypto market cap.

However, according to one of the most respected crypto analysts in the space, an important trend indicator suggests that the current price action very closely resembles a pattern from mid-2016, right before Bitcoin went on its highly publicized bull run and brought crypto into the limelight from there forward.

Bitcoin’s Relative Strength Index Shows Comparison to Last Bull Run

Few crypto analysts carry as much weight as PlanB. The analyst has done extensive research into Bitcoin price analysis and is behind the Bitcoin stock-to-flow model that is often cited by well-respected figures from around the financial sector.

The analysis is so strong, it’s turned skeptics like CNBC Squawk Box host Joe Kernen into not only believers, but supporters who regularly promote the crypto asset at every turn. Kernen has even been seen citing PlanB’s analysis on-air and during segments discussing safe-haven assets like gold or Facebook’s Libra.

In Plan B’s latest analysis, a chart depicting Bitcoin’s Relative Strength Index – a powerful indicator that helps gauge the strength of Bitcoin’s price movements – shows a striking similarity between the current price action’s RSI and the RSI from mid-2016.

#bitcoin still looking strong … feels like mid 2016 pic.twitter.com/lddKSEETye

— PlanB (@100trillionUSD) August 29, 2019

Like where many believe Bitcoin to be at now, in mid-2016, price was just coming out of a long bear market and had just started back on its bullish climb toward its all-time high of $20,000.

After a fall in RSI from the high 60s, to low 60s, Bitcoin RSI then rockets upward toward roughly 75, before it takes another breather, then continues to climb again, topping out just under 90 on the RSI scale.

The similarity suggests that unless Bitcoin completely collapses here and falls to new lows, history should repeat itself, and once Bitcoin gets its footing once again, the true bull run will get underway.

However, factors are different this time around. Everyone does know what Bitcoin is already, and there will be less interest stemming from curiosity alone. Even Google Trends demonstrates this, as searches for Bitcoin haven’t even come close to where they were at the height of the crypto hype bubble, compared to when BTC broke above $10,000 – a price level that was supposed to cause serious FOMO and make a retest of $20.00 a given.

But instead, Bitcoin price is crashing once again, dragged down in part by bearish altcoin sentiment. However, if this model is correct, this is nothing more than a bull market correction. If it isn’t, PlanB will need to look for a plan C.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.