Bitcoin Breaks December 2023 Resistance
Key Takeaways
- Bitcoin’s price successfully breached the $43,700 resistance level, indicating bullish trends ahead of its upcoming halving.
- RSI trend breakout at 62% suggests a potential upswing or consolidation before a rally.
- Historical patterns show RSI breakouts often lead to sideways trading, then significant price jumps.
- The daily chart’s RSI shift may signal a repeat of bullish cycles in Bitcoin’s history.
Over the last 24 hours the BTC price has made a significant move. It broke through the resistance level of around $47,300 that has been in place since December. Staying above this key level could signal continued bullish momentum. This could, in turn, set the stage for a sustained upward trajectory in the price of Bitcoin.
Bitcoin is only about 70 days away from the fourth Bitcoin halving, which will see the block reward reduce from 6.25 to 3.125.
The daily Relative Strength Index (RSI) for Bitcoin has been on a downtrend, marked by progressively lower highs, illustrated as circles in the chart below, since reaching the overbought threshold of 88 in October last year, coinciding with Bitcoin’s price peak at $35,000.
Currently, the RSI stands at 62, having just breached the four to five month RSI downward trend. A breakout from the daily RSI descending pattern is often considered a bullish indicator that could preempt a price increase or a consolidation phase before a significant price rally.
In order to predict a future move, one may look at the past to see what happened. As we can see in the Bitcoin chart above, which overlays the RSI to the real-time BTC chart, a breakout would align with three precedents. In these cases, similar RSI shifts came before sideways price movements before a robust upward trend.
This current shift in RSI movement hints at a possible return of bullish momentum, as seen in the daily charts.
Disclaimer
The information provided herein is for educational and informational purposes only and should not be construed as financial advice, investment recommendation, or an offer or solicitation to buy or sell any securities. Cryptocurrency investments are volatile and high risk in nature, do not invest more than you can afford to lose.
