Price continues to look strong. At the time of writing, the price is at $57.1k, only -7.5% from the recent ATH (all-time high) on the 13th of March. The only way I would turn short-term bearish now would be if we would see a very strong FOMO (fear of missing out) buying or short-term weakness on the 4h hl2 RSI (relative strength index). I try my best to explain this more in-depth below.
Here is the daily chart. As you can see from the RSI, it has hit the 30 only once since the major crash in March 2020, ‘the covid crash.’ We will see a correction where the RSI will hit 30 again, but the problem is to know when. This rise from the last 30 hit at about $10k has been too strong for daily RSI to get that low.
I have marked $50k there with a dashed grey line because it is a round number, and the price hit it accurately on this previous dip, 25th of March 2021. Daily RSI could hit 30 if the price dived into there or a little lower for a short time before bouncing back up. If daily RSI 30 happens, it will most likely be an excellent buying opportunity.
4-hour charts, same charts, but the later one is a little bit more zoomed in. 4h RSI has been a lot better suited for this rally. As you can see, the 4h RSI 30 hits have been excellent buying opportunities and most likely will be so as long as this kind of strength continues.
The first sign of weakness that a bigger correction might be coming would be if the price hits the 30 as it could now soon do and then when the price bounces back up and this RSI hits 70 or close to 70, but the price would not come close to making a new high.
The horizontal lines I have in these charts can be used with these RSIs so that if a support line is close to being hit while RSI gives a buy signal, it can be trusted more.
Other things like gold going down, money stock growing, and the dollar index possible turning down are bullish for a strong continuation of the bitcoin bull market.
