Is the Bitcoin Bull Run Back On Track? RSI Points to Renewed Momentum

After a sharp 17% drop from its all-time high, Bitcoin‘s price has bounced back near the key psychological level of $60,000. This resurgence has reignited hope that the bullish uptrend may still have legs.

The $60,000 price point has now been cemented as a critical support level that could prevent any further sell-offs from spiraling out of control only as long as Bitcoin maintains its position above this threshold, the overarching bullish momentum remains intact.

The pressing question now is whether Bitcoin can muster enough buying pressure to challenge its current record high of around $73,835.

Bounces off major support levels like $60,000 often provide opportunities for invigorated bull runs, though the depth of any future correction is uncertain.

Nevertheless, technical indicators on higher time frames are flashing renewed bullish signals. The Relative Strength Index (RSI) on the 4-hour chart has crossed above the mid-level 50, traditionally viewed as signaling the presence of bullish momentum. On-chain data and derivatives metrics are also hinting at continued upside potential for the flagship cryptocurrency.

On-Chart Indicators

For Bitcoin bulls, a critical development has been the RSI’s recent climb above the crucial 50 mark on the 4-hour chart. Historically, this mid-point breakout following a bounce from oversold territory has often preceded significant upward movements. Data suggests that in similar scenarios, Bitcoin has averaged over 20% surge in the following weeks.

In addition to the RSI, Bitcoin’s price has bounced cleanly off the 200-period exponential moving average (EMA) on the 4-hour timeframe aligning perfectly with the $60,000 support level, which adds more confluence. This widely-followed moving average has acted as reliable support during previous Bitcoin uptrends.

Blackrock Bitcoin ETF Volume Record High Surge

Adding further fuel to the bullish Bitcoin narrative, BlackRock’s spot Bitcoin ETF has seen a massive surge in trading volume to record highs. The BlackRock Bitcoin Trust (IBIT) is the largest and most liquid spot Bitcoin exchange-traded fund with over 238,500 Bitcoins, valued at a staggering $15.63 billion.

Just recently, IBIT’s daily trading volume hit a record high, surpassing the $10 billion mark.

Is this a one-off event?

The answer seems to be no because according to data from The Block, the total volume surpassed a significant milestone, reaching $151.4 billion. This sustained surge in institutional participation suggests a long-term trend with the potential to significantly impact Bitcoin’s future trajectory.