The cryptocurrency bitcoin (BTC) still has “at least one more bullish push to come” before reaching the all-time high of this halving cycle., says new research.
In a series of tweets on the current state of BTC price action, popular analyst TechDev argued that contrary to many opinions, there is nothing unusual about the price of the BTC/USD pair in 2022..
The bitcoin cryptocurrency in 2021: Nothing to see here
With a 40% decline from November’s all-time high of $69,000 still ongoing, sentiment has also taken a hit: “extreme fear” still characterizes both the bitcoin and altcoin markets.
for TechDev, known for his optimistic views on the prospects of Bitcoin, there is nothing to worry about.
Analyzing new wallet addresses in relation to price behavior, he showed that last year’s scenario – the number of new addresses making lower highs while price makes higher highs – is far from unique.
“In 4 of the 6 corrections we saw divergences where price made higher highs and new directions made lower highs”, reads the comments of two posts.
“…To me, all 6 are ongoing corrections, also supported by declining volume.”
That low volume has previously made headlines as part of concerns that BTC/USD pair may see unduly significant moves thanks to illiquidity.
In general, however, Price action relative to Fibonacci levels has remained well within historical norms, TechDev added, and thus there is no reason to assume that another all-time high won’t come before a bearish phase ensues..
“Our current correction (since Feb 2021) is taking place between the same two-cycle fibs, as a running correction has always taken place, with volume and new directions locally declining”, he concluded.
A recovery awaits
As Cointelegraph reported, interest has largely shifted away from bitcoin over the past year, specifically when it comes to retail investors.
But nevertheless, experienced traders remain prepared, with leverage still near all-time highs and institutions starting to re-enter the market.
In the fourth quarter, TechDev began to highlight the trends of the relative strength index (RSI) of bitcoin, which again showed that an all-time high should be reached.
RSI remains significantly “oversold” for the BTC/USD pair, Cointelegraph Markets Pro and TradingView data show, something that in past times has unanimously resulted in a reversal and upward price pressure.
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