In the middle of 2019, when Bitcoin had just surged above $10,000 on the back of an influx of buying pressure caused by market FOMO amongst investors, analysts thought BTC was on the verge of going parabolic again.
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You see, after a year of brutal 80% decline in a period now known as “Crypto Winter,” which brought BTC as low as $3,150, investors were ready for some sunlight. The 300% pump that took place in six months’ time was enough to convince investors that Bitcoin was about to wave goodbye to five digits and “moon.”
But, in classic cryptocurrency fashion, BTC tanked, with the price falling 50% to a low of $6,400 by December of last year. But, since bottoming there, the leading cryptocurrency has rallied by over 30%, leaving emotional investors to once again say a parabolic move that will bring Bitcoin above $100,000 is on the horizon.
But, per a simple analysis of a simple indicator, this rally is not here. Not here yet, anyway.
Bitcoin Still Under Key Level
Cryptocurrency trader Coiner Yadox recently noted that Bitcoin’s long-term phases of bull and bear have always been easily defined by the one-week Relative Strength Index (RSI), with readings of under 55 indicating bear market and readings of above 55 indicating bull market.
Indeed, as he depicts in the chart below, whenever Bitcoin was in a bull market, the RSI always stayed above 55, bouncing off this key level on multiple occasions to allow BTC to set fresh all-time highs. The vice-versa is also true.
On the weekly, Bull market are where RSI>55, and Bear Market when RSI