Bitcoin Price Prepares To Blast Off Back Into RSI “Bull Zone”

Tony "The Bull" Severino

1 year ago

3 mins read

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Bitcoin price is back at nearly $57,000 and is less than $10,000 away from a new setting a new all-time high and heading back into price discovery mode.

It is also moments away from re-entering the RSI bull zone, which in the past has led to cryptocurrency cycle climaxes and a bear market to follow. Here is a closer look and what to watch for.

Bitcoin Price Readies Aggressive RSI “Bull Zone” Reentry

Bitcoin price action doesn’t behave like other assets. Its speculative nature helps it to follow technical analysis well, but remains highly volatile.

But in some cases, when FOMO begins, even technical indicators begin to behave irrationally. The Relative Strength Index, for example, is an oscillator that tells a trader when an asset is oversold or overbought. The idea is that when a reading is above 70 an asset is overbought and nearing the end of its trend.

On lower timeframes, this can help to find short-term tops, but on higher timeframes, going above 70 tends to signal that bulls are out in full force, and very little will stop them.

Bitcoin is about to reach above 70 on the RSI | Source: BTCUSD Index on TradingView.com

The same monthly timeframe also shows another anomaly: Bitcoin price has never gone into oversold territory according to the monthly RSI.

This is all happening while both Bitcoin price and the RSI itself are beginning to build upon a parabolic base. All this behavior suggests that the cycle isn’t over, and another wave up is about to ensue.

The Trend Line Separating A Bull And Bear Market

A different look at the RSI and a descending trendline, drawn with a dotted line below, could provide a clue as to where the trend will end. Falling back below a reading of 70 will confirm a bear market is here.

Could BTC top out at the descending RSI trend line? | Source: BTCUSD Index on TradingView.com

The reentry into the bull zone should cause bulls to take control over Bitcoin price once again, but is contingent upon a monthly close above a reading of 70 to ignite the spark.

Pushing through beyond $65,000 to a new all-time this month would do the trick. If that happens, parabola should take the top cryptocurrency by market cap closer to $80,000 per coin.

That would leave very little room between that level and the promised land of $100,000 and above – where the coming mania will likely come to an abrupt end, much like the same RSI has shown happens at the conclusion of each cycle.

Falling below 70 during this cycle will either be a bear trap that is confirmed this month, or the shortest time spent on the bull zone in Bitcoin’s entire history – which one is it?

Follow @TonySpilotroBTC on Twitter or via the TonyTradesBTC Telegram. Content is educational and should not be considered investment advice.

Featured image from iStockPhoto, Charts from TradingView.com

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.

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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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