Crypto analysts are looking at Bitcoin’s RSI as a potential indicator of where the leading cryptocurrency is heading.
PlanB, who is well-known in the industry for applying the stock-to-flow ratio to Bitcoin, says BTC’s current RSI suggests the digital asset is at the start of a new bull market.
The RSI, or relative strength index, measures the pace of price movements for a given asset. The RSI is typically considered overbought above 70 and oversold when under 30.
According to PlanB, Bitcoin is historically poised for a long-term rally when its RSI enters the 50-80 area. Right now, the RSI is at 59.
“RSI (relative strength index) is a much used indicator showing momentum. When RSI enters the RSI 50-80 zone (green), Bitcoin bull market starts and RSI stays in that range for 3+ up-moves. In bear markets it oscillates in a lower range.”
Right now, Bitcoin is up 0.82% at $10,124, according to COIN360. The rest of the market is mostly in the red.
Etherum is down 2.17% at $216.10, XRP is down 4.84% at $0.2886 and Litecoin is down 2.81% at $74.55.
CoinDesk analyst Omkar Godbole says today’s close is key. He’s looking for Bitcoin to move above $10,380.
“Bitcoin created a bullish hammer candle yesterday, making today’s UTC close pivotal. A close above $10,380 (candle’s high) will likely invite stronger buying pressure and yield a rise toward $11,000.
A high-volume move above $10,822 would confirm a triangle breakout on the daily chart and signal a resumption of the rally from $4,000.”
Here’s a look at the latest forecasts from across the cryptoverse.
CryptoGlobe – Ethereum has likely reversed from lows, starting uptrend
Litecoin, Bitcoin Cash, Stellar, Tron