As discussions about potential rally in the cryptocurrency markets continue, renowned quantitative analyst PlanB evaluated an important indicator for Bitcoin. In his latest video update, he noted that Bitcoin’s Relative Strength Index (RSI) is starting to rise, suggesting the market might be entering a positive phase.
RSI Indicator Analysis and Historical Data
PlanB analyzed historical data and projected that if Bitcoin’s RSI on the monthly chart reaches the 75 level, it could mark the beginning of a multi-month rally. Such increases tend to coincide with periods when investors fear missing out and make rapid purchases. Historically, Bitcoin’s RSI has exceeded 75 three to five times, followed by significant rally periods.
Expectations for Institutional and Individual Investors
This potential rally is considered significant for both institutional and individual investors. Following the surge observed in 2021, it is anticipated the RSI could reach higher values in the coming months. Analysts recall that in some months when RSI exceeded 80, substantial value increases occurred. PlanB remarked, "Last year, markets experienced both fear of missing out and disappointment, resulting in fluctuations in the RSI average."
Current Bitcoin Price Situation
According to the report, Bitcoin is trading around $107,992. Both analysts and market observers note that aside from Bitcoin’s technical indicators, global economic developments and investor psychology could also influence the price. It is known that technical data like RSI are particularly influential in investors’ decision-making processes in the short and medium term. PlanB suggests that reaching the 75 RSI level could lead the market into a more vibrant period.
Despite the positive signals in Bitcoin’s technical indicators, it is beneficial for investors to consider other influencing factors besides relying solely on these data in their investment processes. Analyzing past market cycles reveals that while certain rises occur from the increase of RSI and similar indicators, macroeconomic conditions, regulations, and investor trends should be evaluated together.
