BITCOIN Can this rally go on? The RSI says "YES IT CAN" !

Due to the sheer aggression of this rise, I have decided to make a quick update to yesterday's Bitcoin analysis.

Everything is going according to plan, the underlying trend-line discussed on the previous post broke to the upside and everyone must be wondering one thing: "How far can this rally go? Is it too late for me to jump in?".

The answer is never easy on impulsive waves like the current one, but there are some certain markers that show that this wave is not exhausted yet and it may not be time to book profits.


** The V-Shape **
As seen on the chart, I have included the price action since the June 2019 High, which is currently the natural technical Resistance. During the first part of this V-Shape, the market was on a Bearish Phase and as you see, a Lower High trend-line was dictating the direction (pivot). Bitcoin only went above that trend-line twice (the first being a huge fundamental push in October 26, 2019 after China's President bullish speech on blockchain technologies).

Similarly after the March (COVID fueled) bottom, BTC started the second part of this V-Shape, entering a Bullish Phase, using a Higher Low trend-line as its underlying pivot. The price has (so far) only went below this trend-line once, and today it hit (and marginally broken) it for the first time since September 03. A wick is not sufficient here, we need to see at least another candle above it.


** The RSI **
Perhaps the most interesting (and important) element on this study is the RSI. As seen (on the 1D chart), since October 27, 2019, the RSI has been always reaching a trend-line, where after making a Higher High, it reversed. This is perhaps the most consistent indicator for Profit Taking on this 12-month span.


There is still some room left for BTCUSD before reaching this RSI Higher High trend-line. Will you hold your buys until then? Feel free to share your work and let me know in the comments section!

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