Bitcoin has seen mixed price action lately, with the bulls unable to take control of the trend after the price rose to $ 28,500.
The opposition here has been quite intense, and Bitcoin Victory has yet to show any signs of strength in the aftermath of this event.
The fact that the bulls prevented a deeper setback is positive because it invalidates the possibility that this recent high was a blow-off top
One trader now comments that there is an incredibly bullish indicator that is blinking for Bitcoin.
Referencing the cryptocurrency’s monthly RSI, he writes that a monthly close above a certain level that it is approaching is historically followed by parabolic moves upwards.
In the past, these moves have had an average return of 1,010%, but their size and length seem to decrease over time.
Bitcoin and the entire crypto market have declined in the past 12 hours, which appears to be the direct result of the pressure Ripple’s XRP is putting on the market due to its recent sell-off.
How the market travels over the medium term, however, in all likelihood does not depend on XRP – and that means this latest round of selling pressure can mark a knee-jerk reaction from investors.
One analyst comments that Bitcoin’s monthly RSI is an incredibly bullish sign of where BTC is headed next.
Bitcoin is fighting for momentum after being rejected at $ 28,500
At the time of writing, Bitcoin is trading at $ 27,900. BTC has not yet received enough buy-side support to break above heavy resistance that lies in the lower $ 28,000 region.
For now, this tip could mark a blow-off top.
Indicator signals: BTC is on the verge of a parabolic rise
A trader wrote in a tweet that Bitcoin could be on the cusp of a parabolic movement in the coming days and weeks. He refers to the so-called monthly RSI of the cryptocurrency as an indicator for this.
„BTC – Monthly RSI. The monthly candle is about to close over 80. When this happens the bullish trend will continue, with an average return of 1010.87%. Every cycle is shorter. „
The coming days should shed some light on Bitcoin’s trend as continued weakness could confirm $ 28,500 as a local high and lead to a deeper setback.