Bitcoin (BTC) broke through the $38,000 mark on January 30 as the “tragic” weekend still offers a chance for a strong close to the week.
BTC/USD hourly candlestick chart (bit mark). Source: Trading View
Bitcoin’s “periodic water”
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD regained the $38,000 mark after seeing local highs of $38,740 on Bitstamp a day earlier.
Despite strong after-hours performance, few analysts believe Bitcoin is a solid bull run without traditional market guidance.
“The water is still turbulent for Bitcoin,” Cointelegraph contributor Michael van de Poppe summarized in his latest Twitter update.
“We’re looking at $37,000 to see if it holds up. If not -> I think we will check the bottom of the daily bullish divergence to create them. If we hold, we will see a break above $38.5k. Holidays -> Boring / trap”.
However, the rallies have continued in what appears to be a slow return to BTC/USD form on the daily timeframe after dropping below $33,000 earlier in the week.
For trader, investor and entrepreneur Bob Lucas, the multiple close strength of the pair is above the 10-day moving average (MA).
However, hopes for a weekly close at the $39,600 resistance level are unlikely to pan out at the time of writing.
A skeptical trader and analyst known as Cantering Clark added on Twitter: “The cryptocurrency market is full of breakout traders. What’s the easiest way to lure them in for a weekend when moods are already low?
RSI for bulls gives cause for excitement
Looking at the on-chain data, popular analyst Matthew Hyland, meanwhile, has identified several bullish signals from the BTC Relative Strength Index (RSI).
Related: No explosive stop? Bitcoin Wizard Scale Indicates ‘Low’ BTC Price
On multiple charts, the Relative Strength Index recently hit its highest oversold level since the March 2020 coronavirus crash.
The calculation is used to determine how “overbought” or “oversold” a bitcoin is at a given price, and thus how likely a particular trend is to continue.
For now, thanks to a modest pullback from the lows, the RSI appears to be on track to challenge the multi-month downtrend that has been in place since November.
“Two previous eruptions in the past year have resulted in massive upward movements,” Hyland added in a Twitter comment, along with a chart showing the action.