Wednesday marked one of the strongest rallies of Bitcoin for weeks. Within 12 hours the price of the leading cryptocurrency of 7,700 $ soared to a High of 9,200 $ – a Dollar and a profit of a whopping $1,500 an.
It was a move that surprised the Bitcoin investors on a broad Front: data from Skew.com show that BitMEX Short – and Long-were liquidated positions worth over $ 80 million, as this movement occurred.
The development of Bitcoin, while this increase is so steep that the Relative strength Index (RSI) is approached in the short term, the value of 100. High RSI levels indicate a striking tip, but it is a technical event, the beginning of the 300%of the rally in the year 2019 marked, suggesting that Bitcoin still has further upside potential.
Bitcoin sees the same RSI value, such as at the start of the rally, 2019
The Trend is so strong that in the midst of the peak of the rally as a Bitcoin just tried to cross on some exchanges, the over $9,000 mark – a trader has observed an unexpected technical event:
In a message, which he published in his Telegram channel, he observed, that the RSI of the hourly Charts of Bitcoin 96,5 reached.
Traditional forms of technical analysis state that when the RSI exceeds 70, it is overbought in the analyzed time frame. The fact that the reached the One-hour RSI of Bitcoin briefly 96,5, as the dealer, means that he was extremely overbought, almost to the point of the absolute Tops.
According to the Trader, this value for BTC was the last Time in April of 2019 so high, on the day that the Cryptocurrency within a few hours by 25% in the amount of shot. What followed this step was a broad rally of 4,000 $ to $ 14,000 in three months.
The history may repeat itself, so Bitcoin could occur in the coming days, weeks, and months in a full-blown bull market.
By far not the only positive sign
The extremely high RSI-the pressure is far from the only indication that BTC admission soon in a full blown bull market. In previous Reports, a crypto-noticed-Chartist that Bitcoin has made recently a very important technical achievement: It was possible for him to skip without a lot of resistance 6.400 $ and to claim that level as support.
This is important because of $6,400 is the Point of Control of a price level on the Chart of an asset over a certain period of time, most of the volume of trading and the most liquidity.
The chain’s internal measures, such as the number of active users of the Bitcoin network and the number of new users of BTC will rise also. In less than two weeks, the Bitcoin is held Halving and while the traditional financial world is crumbling, will scarce, the asset value of Bitcoin yet.
Should extend the Rally further, coupled with the upcoming halving, this may be a kind of FOMO (fear of missing something), investors and the exchange rate in the trade. Even his S2F has PlanB forecast revised upwards, with a price target between 2020 and 2024 at $288.000 per Bitcoin.
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