• Bitcoin has been rising since the start of 2021, recently surpassing the $30,000 barrier.
• Analysts suggest that BTC is on the cusp of a new bull market based on technical indicators such as RSI and MACD.
• Historical data shows that BTC has continued to rise or consolidate after each monthly RSI crossed above 50 and each monthly MACD crossed above zero.
Bitcoin Bull Market On The Horizon?
The price of Bitcoin (BTC) has been steadily climbing since the beginning of 2021, with it recently breaching the $30,000 barrier for the first time since June 2022. Some analysts believe that this may be just the beginning and that there are signs that Bitcoin is entering a more sustained bull market.
The Twitter account @BTC_Archive posted a chart showing historical performance after certain technical indicators were met: when the monthly Relative Strength Index (RSI) was over 50 and when the Moving Average Convergence Divergence (MACD) line crossed over its signal line. Both these events indicate bullish momentum in Bitcoin’s price movement. According to @BTC_Archive’s analysis, Bitcoin has never made a new low following these two indicators suggesting strength in an uptrend.
Relative Strength Index
The Relative Strength Index (RSI) is a technical indicator used to measure momentum in price movements. It ranges from 0 to 100 with values above 70 indicating excessive buying at high prices and those below 30 indicating selling at prices below true value; values higher than 50 suggesting average gains are higher than average losses over a one-month period – thus signifying positive trend potential.
Moving Average Convergence Divergence
Moving Average Convergence Divergence (MACD) tracks differences between two moving averages of prices and consists of three lines – MACD line, signal line, and histogram. A monthly MACD crossover occurs when the MACD line crosses above its signal line which indicates bullish momentum shift in favour of an uptrend in prices.
While past performance does not guarantee future results, this analysis provides some confidence that Bitcoin could be headed towards a more sustained bull market judging by its historical behaviour towards several technical indicators including RSI and MACD signals on the monthly chart.