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<\/p>\nBitcoin price is currently trading at $28,000 only a week after retesting below $20,000 \u2013 potentially leaving that price range behind forever.<\/p>\n
The powerful, more than 30% one-week rally has brought the top cryptocurrency to a bullish technical level that in the past only was reached after a bear market bottom was put in.<\/p>\n
After gradually building a potential base following the FTX collapse, Bitcoin is suddenly showing serious strength compared to the rest of the financial world. It is even outperforming altcoins, in the face of a brand new narrative: BTC versus banks.\u00a0The banking sector is in crisis, but this is what Bitcoin was built for.<\/p>\n
Since the situation started, the top cryptocurrency by market cap is up more than 30% \u2013 and it only took a week to get there. The sudden strength has caused BTCUSD to pass a crucial level of on the Relative Strength Index. Breaking back above the level in the past always put in the bottom in hindsight.<\/p>\n
According to the chart pictured below, BTCUSD 2-week RSI has reached a reading above 54, passing above the mid-point of the technical indicator. The Relative Strength Index is a momentum oscillator used to tell traders if an asset is overbought or oversold. Readings above 70 indicate overbought conditions, while readings below 30 suggest the market is oversold.<\/p>\n
More importantly to this chart, price action passing above the middle-point of the RSI at a reading of 50 suggests that momentum is increasing. In Bitcoin and other cryptocurrencies, once trending, the RSI can stay elevated for extended periods, or repeatedly push into overbought conditions without a major, trend-altering correction. That signal is now back, and in the next section we’ll more closely examine what that means.<\/p>\n
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2W RSI is above 50, suggesting strength is increasing | BTCUSD on TradingView.com<\/p>\n
In the chart above, each time 50 on the 2-week Relative Strength Index was broken through from below, it signaled the end of the bear market in crypto and an extended rally in Bitcoin.<\/p>\n
The first signal in 2012 resulted in 18,000% ROI after the RSI passed above 50. The second in the series in 2015 added another 6,000% to the signal’s success rate. The third in 2019 did 600% after the signal appeared. What will it do in 2023?<\/p>\n
#Bitcoin 2-Week Relative Strength Index rising above 50 has typically ended crypto winter and began a new uptrend. pic.twitter.com\/MuouS9jTFH<\/p>\n
— Tony "The Bull" (@tonythebullBTC) March 21, 2023<\/p>\n<\/p>\n