BTC Price Relies on $75K, Trader Claims Bitcoin RSI Mirrors 2017 Bull Run

Bitcoin (BTC) is quietly adopting a significant characteristic from the 2016 bull market as it approaches the $75,000 mark. In a recent post on X, popular trader Jelle highlighted what could potentially be the next major breakout for BTC price action. Jelle stated that BTC’s price movement is remarkably similar to early 2017, drawing comparisons between the current bull cycle and previous ones in 2016-2017 and 2020-2021. Despite the fact that 2024 has already reached a new all-time high before the block subsidy halving, there is still plenty of data indicating that Bitcoin’s largest gains are yet to come. Jelle believes that the relative strength index (RSI) is a major contributing factor. RSI measures the extent to which an asset is overbought or oversold at a given level, and on weekly timeframes, BTC/USD is showing an exciting pattern. Jelle summarized, “Bitcoin is playing out incredibly similar to early 2017.” The accompanying chart compared BTC/USD performance leading up to its peak of $20,000 in 2017 to its current journey from January 2023. Similar to seven years ago, RSI is declining while the price is accelerating towards previous highs. Jelle explained that this indicates a hidden bullish divergence and choppy waters near the previous all-time highs, suggesting an upcoming main breakout. Historically, Bitcoin tends to experience its strongest upward movement when RSI is in the “overbought” zone above 70. These readings can persist for a significant period of time before the BTC price rally becomes unsustainable. Opinions regarding Bitcoin’s short-term future are mixed, with some calling for a return to $60,000 or even lower. Traders such as Credible Crypto and Michaël van de Poppe believe that BTC/USD is currently rangebound. Van de Poppe noted that liquidity has shifted from Bitcoin to Ether around the launch of spot Ether (ETH) exchange-traded funds in the United States, but described the situation as “fine.” It’s important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.