Bitcoin price RSI is about to break past a downtrend formed in the wake of the rally to $20,000
Bitcoin has seen a strong recovery since plunging nearly $1,000 in approximately 12 hours earlier this week. As of the press time, the leading cryptocurrency trades for $9,450 — around 4% higher than the local lows.
Bitcoin has failed multiple attempts at breaking past $10,500 over recent weeks, yet analysts say that the cryptocurrency is still on track to erupt into a new bull run in the coming months.
Bitcoin Charts Signal a Start to Another Bull Run
A prominent trader shared the chart below on June 13th, showing that Bitcoin’s two-week relative strength index (RSI) is about to break past a downtrend formed in the wake of the rally to $20,000.
This is important as the last time the two-week RSI looked as it did now was at the start of BTC’s previous bull run, prior to a ~4,000% move from ~$500 to $20,000.
The RSI breakout isn’t the only trend that has analysts believing that the start of a macro uptrend is on the horizon.
Technical analyst Eric “Parabolic” Thies shared the chart below. It shows BTC’s macro price action along with two key trend indicators, the Chaikin Money Flow (CMF) and the Stochastic RSI (Stoch RSI).
The analyst noted that both indicators look almost exactly as they did at the start of the 2016-2017 bull run, which as described previously, took Bitcoin from the hundreds to $20,000 literally within the span of two years.
These signs show that “your time to buy Bitcoin below $10k is limited,” Thies remarked.
Bitcoin is primed to return to sub $9,000 levels
As the chart below shows, the cryptocurrency has been trading in a tight $100 range over the past day or two.
A move to $8,900 would be a mark a 5.5% drop from the current price of $9,400.
Expecting this for BTC.
Down before up again. pic.twitter.com/sjqXLC56Za
— Cantering Clark (@CanteringClark) June 13, 2020
DonAlt, a popular trader on Twitter, for instance, suggested that Bitcoin could return to the range lows of $8,575 in the coming week. He backed this sentiment by pointing to how BTC has crucially lost the support of a short-term uptrend.
Source: DonAlt (@CryptoDonAlt)
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