- Bitcoin could be heading for another significant upswing.
- Analysts spotted signals that suggest building momentum for Bitcoin.
- Glassnode founders identified a historically bullish indicator for Bitcoin.
Bitcoin could be heading for another significant upswing, according to Jan Happel and Yann Allemann, founders of the data analytical platform Glassnode. The analysts spotted signals that suggest building momentum for the flagship cryptocurrency.
A recent report showed that Happel and Allemann identified a historically bullish indicator for Bitcoin. According to them, the pioneer crypto has overcome critical resistance levels and is currently demonstrating increased momentum.
The pair’s analysis revolved around Bitcoin’s Relative Strength Index (RSI), which is currently above 70. From Bitcoin’s historical figure, that is a level indicating that the price could embark on a significant rally anytime soon.
They said:
“Notice how the last time RSI crossed 70, Bitcoin exploded. The RSI is now beginning to be overbought and could stretch higher toward the 100 mark, as it is the norm with bullish markets.”
Although the analysts predicted a Bitcoin rally, they warned that the price might pull back before the surge kicks in. Happel and Allemann noted that the BTC price could drop to $32,700 before the expected rally.
Bitcoin has sustained an upward momentum since the middle of October, when the price surged from a local low of $23,533 to a yearly high of $35,968 in three weeks. Bitcoin gained about 35% in the recent rally before entering into a sideways consolidation.
The Glassnode co-founders also highlighted the potential impact of a spot Bitcoin ETF on the Bitcoin market when they get approved. They emphasized that the launch of the Bitcoin Spot ETF will have a profound impact on the financial landscape, with substantial demand from companies with vast assets.
Bitcoin traded for $35,134 at the time of writing, reflecting a 0.03% gain in the last 24 hours. Breaking above the yearly high could see the flagship crypto head toward the $40,000 level, representing the next psychological resistance.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
