Bitcoin’s “Double Top” Not a Matter of Concern But RSI Crosses 70 Hurdle
- Bitcoin rally has over 20 million BTC addresses now owning $1 or more worth of BTC
- “Not much stopping this train, just minor daily & weekly resistance left until new yearly highs,” trader Josh Rager
- Meanwhile, RSI reading crosses 70, traditionally this indicates a trend reversal
Bitcoin is enjoying a bull rally, ever since we broke above $4,100 in early April. Till date in 2019, we have seen the price appreciating 233 percent. But it’s only the beginning as we have just started on our fourth bull cycle.
This ensuing bull rally has driven people to BTC as the number of Bitcoin addresses holding $1 or more of value now surpasses 20 million. Meanwhile, over 8 million BTC addresses now own $100 or more worth of BTC.
Not much Stopping Bitcoin Price Train to New Yearly Highs
Currently, BTC/USD is trading at $12,300 with 24 hours gains of 3.37 percent, seeing a drop from today’s highest level $12,883 on Bitstamp. This was caused by an over 7k BTC sell order on Binance.
These small pullbacks may come and go but the leading cryptocurrency will be breaking into new high very soon, a conviction shared by crypto investor and trader, Josh Rager.
“Not much stopping this train, just minor daily & weekly resistance left until new yearly highs,”
Rager sees next resistance before yearly highs at $14k.
A Double Top, Matter of Concern? Not Really
There have been concerns regarding a “double top” if BTC price pushes above $13k again.
But these concerns are not shared by Rager who says these double tops were a popular reversal pattern in 2018, during crypto winter where BTC dropped about 84 percent. Last year, the price created a double high before the next drop.
But the “big” different this time is that 2019 is a bull market.
Another bullish facet is BTC dominance that has gone above 66 percent as the flagship cryptocurrency continues to climb while altcoins do the opposite.
This is why Rager says
“always keep a healthy percentage of your portfolio in Bitcoin especially in a bull market.”
But RSI has Gone Above 70
While the market is bullish currently, Bitcoin RSI has crossed 70.
— PlanB (@100trillionUSD) July 8, 2019
A popular momentum oscillator, the relative strength index (RSI) measures the magnitude of recent price changes in order to evaluate overbought or oversold conditions in the price of an asset.
Having a reading from 0 to 100, traditionally, if RSI registers value of 70 or above, it indicates that the asset is becoming overvalued or overbought. This means the asset may be primed for a trend reversal or pullback. A reading of 30 below, however, indicates an oversold condition.
Moreover, trader Credible Crypto is also expecting a “possible rejection” in the $12.8-12.9k region. But if we get past this, he sees BTC going to the high $13k’s again.
“let's try and break that gate to the moon.”