The last time this happened, Bitcoin exploded, according to Glassnode’s co-founders – here’s what they mean
Glassnode analysts point to a historically bullish signal for Bitcoin (BTC), which has previously led to explosive rallies for the leading crypto asset by market cap.
Glassnode co-founders Jan Happel and Yann Allemann say Bitcoin has “broken through” several critical resistance levels and is now at a point where momentum is increasing.
Analysts are focusing on BTC’s Relative Strength Index (RSI), which is traditionally used to measure the momentum of an asset.
With Bitcoin’s RSI now above the 70 level, analysts say that based on history, BTC could be on track for another major bullish move.
“We have analyzed our proprietary regime shift and concluded that we are moving from a bearish to a bullish environment. The weekly chart reinforces our view. A long-term uptrend has been confirmed, momentum is building and it looks like it’s just the beginning. Note that Bitcoin exploded the last time the RSI exceeded 70.
The RSI is now starting to be overbought and could move further towards the 100 level, as is the norm in bullish markets. In other words, as long as BTC price maintains the uptrend, it is inclined to sustain the rally.”
Source: SwissBlock
The analysts also warn that BTC is more or less entering “uncharted territory” as it begins to flirt with areas not seen since last year. According to Glassnode co-founders, BTC could reach $32,700 before continuing higher.
“We have to remember that nothing moves only upwards and in some ways we are in uncharted territory. Therefore, it is important to define the critical areas to identify attractive entry and exit levels.
Short-term support is around $33,700, with a pivot point at $34,400. However, in the medium term, we could see a retest of the $32,700-$33,300 level. Remember that volatility is high, so we may see wicks below our current support levels. BTC bulls still have a solid technical advantage in the short term as an uptrend in price is evident on the daily bar chart.”
Source: SwissBlock
At the time of writing, Bitcoin is trading at $35,142.
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