Bitcoin (BTC) is quietly copying key features of the 2016 bull market ($75,000).
In a May 24 post by X, popular trader Jelle noted what could be the next “major breakout” in BTC price action.
Trader: BTC price is “remarkably similar to early 2017”
Bitcoin analysis often points out similarities between the current bull cycle and past bull cycles, especially the two most recent cycles: 2016-2017 and 2020-2021.
While 2024 stands out in that it hit a new all-time high before, rather than after, the block subsidy halving, there is plenty of data to suggest that Bitcoin’s steepest rise is still ahead.
For Jelle, the Relative Strength Index (RSI) is the main helpful factor.
RSI captures the extent to which an asset is overbought or oversold at a particular level, and on a weekly timeframe, BTC/USD is painting an interesting picture.
“Bitcoin is looking incredibly similar to where it was in early 2017,” Jelle summarized.
The attached chart compares BTC/USD’s performance during its run to the 2017 high of $20,000 with its journey from January 2023 to now.
Today, just like seven years ago, RSI is falling while prices are accelerating towards previous highs.
“There was a latent bullish divergence and choppy wave near the previous high,” Jelle explained.
“Once you clear $75,000, it accelerates quickly.”
Historically, Bitcoin tends to see its sharpest gains when the RSI is in “overbought” territory above 70. These numbers could continue for quite some time before the BTC price rally becomes unsustainable.
Is there room for a return to $60,000 Bitcoin?
As Cointelegraph reports, opinions are mixed on what Bitcoin will do in the near term.
Related: Bitcoin Price of $150,000 in 2024 Is the ‘Base Case’ — Tom Lee
This week’s announcement of preliminary approval for a spot Ethereum (ETH) exchange-traded fund (ETF) in the United States did little to support the performance of both coins.
Still in a range, BTC/USD is facing calls for a return below $60,000. Among those predicting this outcome is Michaël van de Poppe, founder and CEO of renowned trader Credible Crypto and trading firm MNTrading.
“Bitcoin is consolidating and is in scope,” the latter wrote in one of his latest X posts.
“The consolidation will probably take place over a longer period of time and we expect $61-63,000 to be possible as well.”
Van de Poppe explained that at the time of the ETF’s launch, liquidity was “cycled” from Bitcoin to Ethereum, but the situation was “okay.”
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.