Investors are trying to decide if now is the right time to get into Bitcoin, or if they should wait until there’s a better chance to buy. This article looks at the weekly RSI of Bitcoin to see if it’s a good time to buy.
Bitcoin’s price has increased by over 100% year-to-date (YTD), reaching a trading value of approximately $35,260 at the time of writing. This surge in price has been accompanied by three consecutive bullish weekly closes. In fact, Bitcoin is currently at its highest level since May 2022 and has experienced a YTD growth of more than 112%.
According to data from CoinMarketCap, Bitcoin’s market capitalization has surpassed $688 billion, indicating a significant increase in interest and optimism among investors. Additionally, the Crypto Fear & Greed Index is firmly in the “Greed” territory, further supporting the notion of heightened enthusiasm for BTC.
Given the substantial upward movement in price, there is speculation regarding whether Bitcoin will experience a pullback or a significant correction in the coming weeks. Notably, YouTube analyst Austin Hilton, who has an audience of 235,000, recently released a video discussing this topic. Hilton highlights that Bitcoin’s daily Relative Strength Index (RSI) has entered overbought territory, suggesting the possibility of a price correction following its recent surge.
However, Hilton also references a recent Tweet from Scott Melker that provides hope for Bitcoin holders. Despite the weekly RSI surpassing 70, indicating overbought conditions, Melker recalls a similar situation in 2020. During that time, Bitcoin’s weekly RSI exceeded 70 when the price was around $12,000. However, this did not hinder the coin’s subsequent surge to $65,000 over the following six months. Importantly, this previous scenario occurred around the same time of year, suggesting that a similar trend may be unfolding presently.
Furthermore, this potential trend aligns with the upcoming BTC halving event scheduled for April 2024. Both Hilton and Melker’s analyses indicate that the weekly RSI metric points to further upward potential for Bitcoin, despite the short-term overbought conditions observed on smaller time frames.
While Bitcoin may experience some sideways consolidation in the near term, both analysts remain optimistic about the continuation of the uptrend. In fact, Melker even suggests that there is “endless room to run” for Bitcoin’s price.
Several alternative cryptocurrencies with a focus on Bitcoin have emerged in response to the recent positive market sentiment. One such altcoin is Bitcoin Cash (BCH), which has experienced a 17% increase in value over the past month.
While the exact cause of BCH’s surge is unclear, it has historically moved in sync with Bitcoin, benefiting from its momentum. Another Bitcoin-themed alternative gaining attention is Bitcoin ETF Token (BTCETF). This token aims to provide financial exposure to the excitement surrounding the potential approval of a spot BTC ETF in the US.
The creators of BTCETF recently launched a presale phase, raising over $65,000 in just two days. As BTCETF’s value may be indirectly linked to Bitcoin’s performance, it presents a speculative opportunity for investors looking to capitalize on the potential ripple effects of a spot ETF approval. Additionally, Bitcoin Minetrix (BTCMTX) is a new altcoin that could benefit from Bitcoin’s positive momentum.
The Bitcoin Minetrix platform offers a unique “Stake-to-Mine” mechanism, allowing everyday investors to mine BTC and earn rewards by staking the native BTCMTX token.
Austin Hilton, a YouTube analyst who previously provided a Bitcoin weekly RSI analysis, has recommended Bitcoin Minetrix, stating in a Tweet that it is unlike anything seen before. These three crypto assets demonstrate the various ways in which the broader market can benefit from fluctuations in Bitcoin’s price.
Consequently, investors will closely monitor their progress in the coming days to assess their potential for further growth alongside BTC.