A closely followed crypto strategist thinks that Bitcoin (BTC) is less than a week away from confirming a strong bullish reversal signal.
Analyst Kevin Svenson tells his 161,000 followers on the social media platform X that he’s keeping a close watch on Bitcoin’s weekly relative strength index (RSI) indicator, a momentum oscillator that can help traders spot trend reversal areas.
According to Svenson, BTC’s weekly RSI is in the early stages of shattering a diagonal resistance that has kept the market bearish since January. He notes that Bitcoin needs to stay above the downtrend line for the rest of the week to confirm the breakout.
“BITCOIN | Weekly RSI Breakouts:
Once confirmed, weekly RSI breakout signals have proven to be among the most reliable macro breakout indicators.
[Five] days until full confirmation.”
Looking at the trader’s chart, he appears to point out that weekly RSI breakouts have been signaling the start of strong Bitcoin rallies since the start of 2023.
As the weekly RSI attempts to breach its diagonal resistance, Svenson notes that BTC’s price has already taken out a downtrend line on the daily chart.
“Bitcoin attempting to break out.”
At time of writing, Bitcoin is trading for $84,630.
Turning to altcoins, the trader says that a real altcoin season will begin once a large-cap crypto asset fully enters bull territory.
“A true altseason will only begin once Ethereum pumps.
Love it or hate it, it’s just the truth. It’s the reason we haven’t seen one yet.”
At time of writing, Ethereum is worth $1,631.
Follow us on X, Facebook and Telegram
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Generated Image: Midjourney
Read the full article here