Bitcoin BTC/USD, could be on the verge of a significant upswing, according to the co-founders of data analytics company Glassnode. This comes as Bitcoin BTC/USD exhibits signs of gaining momentum.
What Happened: Glassnode co-founders Jan Happel and Yann Allemann have identified a historically bullish indicator for Bitcoin. They pointed out that the digital currency has successfully navigated critical resistance levels and is currently demonstrating increased momentum.
The experts centered their analysis on Bitcoin’s Relative Strength Index (RSI), an indicator used to assess asset momentum. They noted that Bitcoin’s RSI is currently above 70, which according to past patterns, suggests the cryptocurrency may be on the cusp of a significant rally.
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"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," Happel and Allemann observed, confirming a long-term bullish trend.
They cautioned that Bitcoin is now entering “uncharted territory”, potentially reaching the $32,700 mark before soaring further.
Why It Matters: The prediction of a Bitcoin rally by the Glassnode co-founders is significant due to their expertise in data analytics, specifically in the crypto market. Their analysis, grounded in historical data and driven by key market indicators, provides potential investors with valuable insights into Bitcoin’s future trajectory.
The assessment of Bitcoin’s RSI, in particular, is a crucial tool for traders and investors. It will be interesting to observe if Bitcoin’s current momentum and potential ‘overbought’ status indeed lead to the forecasted surge.
At the time of writing, Bitcoin is being traded at $35,142.
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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