Bitcoin’s Weekly RSI Looks More Powerful Than The One In 2017

Bitcoin’s weekly RSI looks more powerful than the one in 2017 as the price of the coin reached almost $35,000, starting 2021 with a bang. Last week’s candle was the biggest one in the history of the asset as we reported in our previous Bitcoin news.

The move resulted in a strong reading on Bitcoin’s weekly RSI looking stronger than ever as it now surpassed the momentum seen in 2017 that put BTC on the map for the first time. 2020 was an eventful year because there were many catastrophic events like the pandemic and economic crashes which only propelled technological adoption faster.

This is exactly what is happening to Bitcoin this year as the world is trying to figure out how to preserve its wealth in the face of the fiat money printing and the crashing dollar. A weak dollar has allowed for the leading cryptocurrency to thrive and even created the perfect storm for BTC but also revived the retail interest after three full years. The institutional demand has boosted the latest rally and pushed the RSI to a higher level than the one seen in 2017.

This is precisely what is happening with BTC this year as the world tries to figure out how to preserve its wealth in the face of the unprecedented fiat money printing and the slow death of the dollar. The weekly RSI reached over 93 over the weekend ahead of the record-setting weekly close and the first weekly candle of 2021. These two instances date back to 2013 where the crypto was able to push beyond the point of the technical indicator.
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This year alone, BTC climbed 8000%.

In 2013, BTC was able to achieve a 9000% ROI in one year and this year was highlighted by two weekly RSI peaks with an enormous rise before turning around. When the momentum turned both times, BTC corrected by 75% and if this happens again, BTC could go back to $10,000. With the current institutional appetite growing, this correction is unlikely but the second of the two RSI peaks was the top in 2013 which resulted in the first major bear market.

What’s more likely is that a correction is coming after this bulls’ strength and the RSI doesn’t just indicate trend strength as the name implies and how most analysts use this tool but it is used to signal once an asset enters the oversold or overbought territory. BTC is now the third most oversold coin on a weekly timeframe but how far will things correct is still yet to be seen.