Bitcoin has managed to recover some ground from the early July drop to a multi-year low and now fights for $65,000. On the more macro scale, though, the asset has flashed a signal that preceded one of the most impressive rallies in its recent history.<\/p>\n
Can it do it again now?<\/p>\n
The signal in question was the formation of a bullish RSI divergence on the weekly chart, as outlined<\/a> by popular analyst Ali Martinez. It emerges when the asset\u2019s price and its 14-period Relative Strength Index on a weekly chart move in the opposite direction, suggesting that the underlying trend is losing momentum.<\/p>\n According to Martinez, the last time this happened was four years ago during the 2022 bear cycle. At the time, BTC bottomed at around $16,000 before the next expansion phase began, culminating three years later in a new peak of over $126,000.<\/p>\n The subsequent correction<\/a> since that October peak has driven the cryptocurrency south to around $60,000, where the bullish RSI divergence appeared. History is no indicator of future price performance, but it\u2019s still fun to speculate that if bitcoin were to mimic its 2022-2025 rally precisely, it would skyrocket to over half a million dollars per unit.<\/p>\n Fellow analyst Altcoin Sherpa noted<\/a> that the 200-EMA on the 4-hour chart had flipped for the first time in months, but BTC still needs to reclaim $65,000 to signal that the dip and bottom are in during this cycle.<\/p>\n Micha\u00ebl van de Poppe spoke about when and how investors should consider (re-)entering the bitcoin ecosystem. He argued<\/a> that many expect another leg down and a drop to $40,000 in the next few months and want to buy there. However, he asked what their plan B would be if that didn\u2019t happen.<\/p>\n \u201cMost of those people will then be buying back at $90,000 per bitcoin. That, to me, is a stupid strategy to go for.\u201d<\/p>\n Instead, he believes buying at current levels is such a \u201cphenomenal opportunity\u201d that investors should take advantage of and wait 2-5 years to fully enjoy the potential price appreciation. And, if BTC indeed dips to $40,000, that would be an \u201ceven extra opportunity,\u201d but he wouldn\u2019t rely blindly on such a scenario.<\/p>\n The post This Rare Bitcoin Signal Preceded a 700% Rally: Is History About to Repeat?<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Bitcoin has managed to recover some ground from the early July drop to a multi-year low and now fights for $65,000. On the more macro scale, though, the asset has flashed a signal that preceded one of the most impressive rallies in its recent history. Can it do it again now? BTC to $500K and […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-200616","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/200616"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=200616"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/200616\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=200616"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=200616"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=200616"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}The Right and Wrong Strategies<\/h2>\n