Bitcoin RSI Echoes 2017 Bull Run, Trader Highlights $75K as Key Price

Bitcoin (BTC) is stealthily mirroring a crucial characteristic from the 2016 bull market that emerges at the $75,000 mark. On May 24, a well-known trader named Jelle noted this phenomenon in a social media post, predicting it could serve as the next significant breakout point for BTC’s price trajectory.

In his analysis, Jelle pointed out the striking resemblance between Bitcoin’s current price action and its performance in early 2017. Analysts often draw parallels between Bitcoin’s current bull run and those from previous years, particularly the 2016-17 and 2020-21 cycles. Although 2024 is unique in that it reached a new all-time high before the block subsidy halving, there is abundant data indicating that Bitcoin’s most substantial gains could still be forthcoming.

Jelle places considerable emphasis on the Relative Strength Index (RSI), which gauges whether an asset is overbought or oversold at a given price level. On weekly charts, Bitcoin is painting a promising picture. “Bitcoin is acting remarkably similar to early 2017,” Jelle noted. His chart juxtaposed BTC’s journey towards its 2017 peak of $20,000 with its movement from January 2023 to the present day. Currently, as it was seven years ago, the RSI is declining while the price is steadily climbing towards prior highs.

This scenario includes a “hidden bullish divergence and turbulent conditions around previous all-time highs, just before a major breakout,” Jelle explained. He suggested that “clearing $75,000 would expedite the upward movement significantly.” Historically, Bitcoin’s most vigorous rallies have occurred when the RSI is in the “overbought” zone above 70, lingering there until the rally reaches unsustainable levels.

Speculations abound regarding Bitcoin’s short-term movements. Some analysts foresee a potential return to $60,000 or even lower levels. Despite the U.S. approval for preliminary spot Ether (ETH) exchange-traded funds (ETFs), both Bitcoin and Ether have failed to capitalize on this news in terms of price performance.

Still caught in a range, BTC/USD has invited predictions from a variety of analysts. Popular traders, including Credible Crypto and Michaël van de Poppe, the CEO of trading firm MNTrading, foresee a possible dip. Van de Poppe stated on social media that “Bitcoin is consolidating within a range. This consolidation could persist for a longer period, and we might see the price touch $61,000 to $63,000.”

Van de Poppe also mentioned that liquidity is rotating from Bitcoin to Ether in the wake of the ETF news, but considers this a normal part of the trading environment. “The situation is normal,” he summarized, suggesting that market participants should not panic but observe how liquidity shifts impact both assets.

As Bitcoin continues to manifest patterns reminiscent of past bull cycles, both traders and investors are closely monitoring these signals. The anticipation surrounding Bitcoin’s next move is palpable, with many optimistic about breaking the $75,000 mark. The RSI and other technical indicators will be key in determining whether Bitcoin can maintain its bullish trajectory.

Bitcoin’s journey is closely mirroring previous successful bull runs, giving seasoned traders reasons to remain optimistic. Whether it will reach $75,000 in the near term remains to be seen, but historical data and current RSI metrics present a compelling case for those looking to ride the next wave.