- There is a difference in the RSI data from Santiment and TradingView.
- Their implications remain optimistic despite the minor differences.
In a recent post on X (formerly Twitter), Santiment noted that Bitcoin [BTC] Prices had a good reason to go up. Although AMBCrypto's analysis agreed with this result, there were some interesting nuances to it.
The rise above the $43,000 resistance on December 20 was an encouraging sign of bullish strength. A recent AMBCrypto report highlighted that miner revenues were high and rising transaction fees contributed to this.
A closer look at the key figures
AMBCrypto took a look at Santiment and found that social volume dropped over the weekend. This trend has been apparent for months and was therefore no surprise.
The number of addresses with more than 100 BTC increased from 15941 on December 19th to 15956 on December 20th.
Source: Santiment
The Consumed by Age metric saw an increase on December 18, reflecting a possible increase in selling pressure. There have been no major increases since then.
As highlighted in Santiment's post, the RSI fell to 42.09 on December 19th before rising to 50.38 on December 20th.
However, it is important to note that Santiment's data is calculated slightly differently than the preferred technical analysis platform, TradingView.
On TradingView, the RSI on the one-day chart for the spot BTC market on Binance was at 57 on December 19th. On December 17th it was at 53.8, which is nowhere near the value of 42.09 corresponded to the one we saw on Santiment.
Source: BTC/USDT on TradingView
Although the RSI formula is the same, slight variations in rounding can result in a discrepancy. Due to time zone differences, different daily closing dates may also be used.
Additionally, Santiment may aggregate data differently, while the graph above is based solely on data from Binance.
On the TradingView chart, the RSI was at 45 on October 12, but has not reached that level since. A dip below 50 would be an early sign that momentum is starting to shift in favor of sellers.
Does this mean Bitcoin may not be prepared for a rally?
Both charts agreed that Bitcoin continues to exhibit a bullish bias. With the RSI above the neutral level of 50, it meant that buyers were still in control at press time and the technical structure on the one-day chart remained in favor of the bulls.
Source: Coinglass
Read Bitcoins [BTC] Price prediction 2023-24
BTC was already above the $43,000 resistance level but struggled to break the local resistance at $44.25,000. AMBCrypto noted that open interest has been trending upward since December 19, a sign that sentiment is once again swinging positive.
It is expected that clearing the local resistance at $44.2K would lead to further capital inflow into the futures markets and support further gains.
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