Bitcoin May Surge Past All-Time High

Bitcoin may be up for a bullish surge past its current all-time high to a new peak price if it breaks from its weekly RSI resistance.

The pioneering cryptocurrency has rebounded considerably in the past 24 hours, reclaiming $97,000 for the first time in three days. This much-needed bounce follows growing speculations that China will lift its years-long ban on Bitcoin and cryptocurrency.

Yifan He, the CEO of Chinese firm Red Date Technology, told CNBC yesterday that the chances that China will unban digital assets have exceeded 50%. Notably, pressure from Hong Kong’s flourishing crypto market fuels the rumored reassessment.

Meanwhile, amid the growing market momentum, analyst Kevin Svenson highlighted a catalyst for further upside in a Feb. 19 post, predicting a Bitcoin price surge based on historical reactions to a relative strength index (RSI) breakout.

Bitcoin Retesting Weekly RSI Resistance

Svenson noted an emerging trend after Bitcoin’s recent rebound, emphasizing that Bitcoin’s RSI is currently retesting its weekly resistance. The RSI indicator measures the magnitude of an asset’s price swing, indicating overbought and oversold regions.

He stressed that a successful breakout from this resistance would reinstate Bitcoin’s long-term bullishness, pushing the asset to unprecedented highs.

The accompanying chart illustrates this bullish premise. Historically, Bitcoin’s price has surged extensively when its RSI breaks on the weekly timeframe.

For context, Bitcoin rallied 95% following a December 2022 RSI breakout, with another 80% uptrend in October 2023. Additionally, it reacted bullishly to resistance breaches in January and September last year, surging 73% and 100%, respectively.

On average, the last four RSI breakouts have seen Bitcoin prices increase by 87%. If this trend continues, Bitcoin could surpass its all-time high to reach $181,294.

Price Analysis

Currently, Bitcoin’s RSI is at 61.70, signifying bullish momentum with potential for further upside, as it remains below the overbought territory. However, this indicator is not the only precursor for a potential price increase.

On-chain analysis reveals a growing bullish sentiment among market participants, particularly on exchanges. Data indicates that the bid-ask volume imbalance has flipped bullish at 0.86%, as trading activities increasingly favor a Bitcoin surge.

However, trading volumes have decreased by 23% in the past 24 hours, totaling $28.83 billion. Other indicators like large transaction volumes and concentration remain neutral, presenting mixed signals.

As of now, Bitcoin trades at $97,180, reflecting a 1.27% increase in the past 24 hours.