Bitcoin stays near $38K as RSI breakout challenges ‘boring’ weekend

Bitcoin (BTC), which topped $38,000 on Jan. 30, was still a “trappy weekend” that offered the possibility of a solid weekly close.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

Bitcoin: “Choppy waters”

Cointelegraph Markets Pro and TradingView data showed that BTC/USD recovered the $38,000 mark, after hitting local highs of $38,740 via Bitstamp.

BTC’s strong performance “out of hours”, however, was not believed by many analysts to be a bullish play.

Michael van de Poppe, a Cointelegraph contributor, summarized the situation in his most recent Twitter update.

“Looking at $37K, to see if that sustains. If not, I assume we will test lows for daily bullish diversification to create. If we hold, we may see a breaker over $38.5K. Weekend times -> boring/trappy.”

The highs continued to show what appears to be a slow return of form for BTC/USD daily timeframes following its sub-$33,000 lows earlier this week.

Bob Loukas was a trader, investor, and entrepreneur. His strength was in the pair’s multiple closes that were above the 10-day moving mean (MA).

If you see two consecutive closes that are above the 10-dma of #bitcoin, it is likely that the lows are now (for a 60-day cycle). Perhaps it is possible to try to get back to the $35k range.
— Bob Loukas (@BobLoukas) January 29, 2022

However, it was still unlikely that the weekly close of $39,600 resistance would be achieved at the time this article was written.

“The crypto market is full breakout traders. How can you lure them during a weekend of low morale? “Force a move,” said Cantering Clark, a skeptical trader and analyst on Twitter.

Bulls are excited by RSI

Moving to on-chain data, Matthew Hyland, a popular analyst, revealed more bullish cues from BTC’s relative strengths indicator (RSI).

Related: What’s the deal with a blow-off top? Bitcoin hodler metric points to a ‘depressed” BTC price

RSI recently reached its highest “oversold” levels since March 2020’s Coronavirus crash.

This metric can be used to determine how much Bitcoin is “overbought” at a given price and how likely it is that a certain trend will continue.

RSI seems to be in the process, thanks to a modest rebound from the lows, of challenging a multimonth downtrend that has been in place since November.

Hyland commented on Twitter that “the two previous breakouts in the past year have led to massive bullish movements,” and included a chart showing the action.

Bitcoin daily RSI vs. BTC/USD chart. Source: Matthew Hyland/Twitter
https://cointelegraph.com/news/bitcoin-stays-near-38k-as-rsi-breakout-challenges-boring-weekend

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Donna Burk– Business News My Name is Donna Burk and I am also the main source from the ‘Dailynewssheet.com’ of all the exclusive and most delicate visualization of the activities in the business sector. My first step towards this journey was taken in the very early years of my life. I started with an independent financial consultant. However, I only had almost 4 years of skills and experience in this market. I have always been a free personality and like to fly one place to another, to explore more and more. Moreover, this passion and craze of traveling gave me a chance to report a section for best news associations. Last but not least, I am presently working full-time as an editor.

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