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Source: Сointеlеgrаph

Bitcoin (BTC) is on the verge of a new “big rally” as the strength of the market replicates the conditions of the 2018 bear market.

According to the latest analysis, BTC/USD will continue to rise “after some consolidation” thanks to key signals from its Relative Strength Index (RSI).

Bitcoin shows never-before-seen bullish divergence

As the BTC price rally continues, bitcoin bulls are feeling more and more confident despite widespread mistrust about the durability of the current rally.

For the popular trader Crypto Wolf, the key phenomenon currently happening is what separates Bitcoin’s latest recovery from all others.

The RSI, as it noted on January 18, has printed a long-awaited bullish divergence on the weekly time frames – something that has never happened before.

“BTC has printed a rare weekly bullish RSI divergence. Never happened in the history of BTC, a once in a lifetime opportunity,” he summarized on January 21.

RSI is a fundamental indicator used by traders to determine if an asset is overbought or oversold at a given price. The weekly edition took a long time to prepare, and announced in advance that it would appear late last year.

“The technical data was there, the charts were screaming for a day, but as usual, most were in full bear mode,” Wolf added.

Weekly candlestick chart BTC/USD (Bitstamp) with RSI. Source: Trading View

Analyst: ‘Some consolidation’ will precede growth

In doing so, Bitcoin is beginning to repeat the renaissance last seen at the end of its previous bear market in early 2019.

Related: Is a dead cat jumping? Bitcoin price approaches $23,000 hitting new 5-month high

As such, trader and analyst Tardigrade Trader, also known as Alan on social media, is predicting that the good times will continue for some time to come.

“BTC is repeating the RSI and Price Action pattern to the bottom of 2019,” he told followers last week.

“On the daily chart: 1. RSI Strong uptrend towards the overbought zone 2. Before that, $BTC fell significantly 3. Flash buyers bought up $BTC. After some consolidation, a big rally will follow.”

Annotated BTC/USD chart. Source: Trader Tardigrade/Twitter

According to data from Markets Pro and TradingView, the daily RSI is around 87 at the time of writing.

This is the highest since January 2021, months before BTC/USD set a new all-time high of $58,000 in April and $69,000 in November.

1-day BTC/USD (Bitstamp) candlestick chart with RSI. Source: Trading View

The views, thoughts and opinions expressed here are those of the authors only and do not necessarily reflect or represent the views and opinions of .

Source: Сointеlеgrаph

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