Bitcoin Bouncing From Bull Market Support Points To 2021 As The Year Of Crypto

Tony "The Bull" Severino

1 year ago

2 mins read

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Bitcoin price recently plunged from over $12,000 at the 2020 high to back under $10,000. But after seven straight days of retesting resistance turned support, the crypto asset is already back at $11,000 and climbing.

The bounce on weekly timeframes, just so happened to take place at a specific reading on the Relative Strength Index that throughout Bitcoin’s history has acted as bull market support. If the key level continues to hold, 2021 will be the year of the return of crypto.

Bitcoin Bear Market Could Be Over With This One Line Holding On Weekly Timeframes

Crypto analyst are torn on if Bitcoin’s bull market is here or not. Believers in the stock-to-flow model are certain that now that the halving is in the past, its off to the races and its only a matter of time before prices increase.

Others subscribe to a lengthening cycle theory, that says Bitcoin has a lot more consolidating to do, and could potentially even set new lows from here. Such a scenario would crush any renaming hope in the stock-to-flow model and could prompt an extreme selloff.

But more and more signals are supporting the idea that a new bull market is beginning. This theory is also being backed up by weekly RSI support on BTCUSD price charts holding up over a reading of 55, just like the asset did during past bull runs.

BTCUSD Weekly Relative Strength Index 55 Support Holding | Source: TradingView

Relative Strength Index Measures Trend Strength, Momentum, Overbought and Oversold Conditions

The Relative Strength Index is a trend-strength and momentum measuring tool. When the tool reaches over 70 or under 30, it signals that an asset is overbought or oversold respectively.

But those aren’t the only meaningful numbers on the RSI. On weekly timeframes in BTCUSD price charts, a reading of 55 on the RSI has had significance throughout all of Bitcoin’s lifecycle.

The line acts as the differentiator between bear and bull markets, and when the top crypto asset holds above that line, it usually means a bull run is on.

Bitcoin price just rebounded hard, directly from that important level on the RSI, and it could mean that the crypto asset has officially confirmed a new bull market.

If history repeats, that line should hold from here on out, no matter how nasty the correction gets. If the line gets lost, however, it could be back to the troughs of the bear market for Bitcoin and the rest of crypto.

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.

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