Bitcoin Stays Near $38K

The RSI is on the verge of repeating a trend break that triggered “massive” BTC price moves twice last year. Bitcoin (BTC) remained above $38,000 on Jan. 30 as a “trappy” weekend offered the possibility of a solid weekly close. BTC/USD reclaimed the $38,000 mark, according to data from Cointelegraph Markets Pro and TradingView, after reaching a local high of $38,740 on Bitstamp the day before.

Despite its strong “out of hours” performance, few analysts saw BTC as a solid bullish play in the absence of traditional market guidance. Nonetheless, the highs continued what appears to be a slow return to form for BTC/USD on daily timeframes following its sub-$33,000 lows earlier in the week.

Bob Loukas, a trader, investor, and entrepreneur, saw strength in the pair’s multiple closes above the 10-day moving average (MA). However, at the time of writing, it appeared that a weekly finish at $39,600 resistance was unlikely to be met.

The RSI Enthralls Bulls

Meanwhile, turning to on-chain data, famous analyst Matthew Hyland revealed even more bullish cues from BTC’s relative strength indicator (RSI). RSI recently reached its most “oversold” levels since the March 2020 Coronavirus crash across multiple chart timeframes.

The metric used to determine how “overbought” or “oversold” BTC is at a given price and thus how likely a given trend is to continue.

RSI appears to be in the process of challenging a multi-month downtrend that has been in place since November.