Bitcoin Weekly “Relative Strength” Increasingly Stronger Than 2017 High

 

Bitcoin gained at price during the holiday season and commenced the new year with a tremendous surge. During last week’s uptrend, bitcoiners had an amazing moment as the digital asset recorded an all-time high of over $36,000.

This brought forth a weighty weekly read-out in terms of relative strength for the asset. Bitcoin which is the leading cryptocurrency on a market share basis overwhelmed the 2017 price surge which positioned the digital asset as the prime in the cryptocurrency race. The following may indicate the remarkable uptrend of bitcoin although experts argue is not a walk-in park for the asset.

Bitcoin Uptrend Displays Greater Relative Strength Compared to 2017 High

Last year was exceptional for bitcoiners and mostly the entire cryptocurrency market. Similar destructive incidents such as the economic crisis and outbreaks in past years have accelerated the development and acceptance of technology quickly.

This has been the case for bitcoin in 2021 as the global community endeavors in discovering how to protect their assets amidst a weakening US dollar and unusual printing of fiat currency.

The weakening dollar to large extent gave room for the dominant digital asset in terms of market share to prosper. The superb surge for the digital asset besides revitalizing the retail interest rates lately, the institutional propelled demand also drove the relative strength for the digital asset to a historic high compared to 2017 high.

What Previous Cases for the Exceedingly Purchases of Bitcoin shows?

Bitcoin in 2013 nearly registered 9000 percent ROI within a single year. In the same year, the digital asset was marked through a two weekly rise and respectively recorded a tremendous surge before declining later.

When the uptrend eventually spun, the cryptocurrency corrected by over 75 percent for the two times. This implies that a 75 percent correction compared to the latest uptrend, may set the bitcoin price under $10,000.

Regarding the latest institutional acceptance, this kind of correction seems quite unlikely during this stage of the bitcoin bullish run. Moreover, the RSI surge outperformed the 2017 record, which led to a bearish run for 3 years but also hardly a likely case considering the high institutional demand and supply shortage for bitcoin.

What appears to be possible is the expected asset’s correction following a tremendous bullish run. Moreso, the RSI in addition to displaying strength, also its initial purpose is to indicate when the digital asset is increasingly purchased.

Bitcoin has acquired the third rank as most sold every week. However, how this uptrend and correction of bitcoin is still a mystery. Recalling the second bull market, the asset corrected at 37 percent although in 2016 and 2017 the corrections were higher compared to 2013.

Since the Relative Strength Index may have a ranking at 93; which is close to the 2013 and 2019 surges, this may result in corrections that could break the disparities. This implies that a 56 percent decline is likely from the sum which would set the digital asset at $15,000.

However, a correction may absent investors who joined the race lately but also may set the price of the digital asset at a convenient rate for other bitcoin enthusiasts. 

Are you looking to profitably trade bitcoin in 2021? Bitcoin trading is a lucrative venture when done using the correct tools and method. Cryptocurrency trading tools like the Bitcoin Future are fully automated to carry out trades on behalf of the user by utilizing computer-based algorithms. The algorithms scan the market on behalf of the trader to come up with the most profitable trading signals.

Log in