Bitcoin (BTC) RSI Level Shows We Are Still Early In the Bull Run

After staying under pressure last week, Bitcoin (BTC) has bounced back strongly making a move above $56,000 levels over the weekend. At press time, BTC is trading at a price of $56,369 with its market cap surging past $1 trillion once again.

Bitcoin has shows volatile trading patterns over the last two weeks swinging between the $53K-$61K range. While profit booking has ensured at some point, longer-term investors are still better-off! Bitcoin’s relative-strength-index (RSI) levels show that we are still very much early in the Bitcoin bull run.

PlanB, the author of the Stock-to-flow (S2F) model states that during the previous bulls runs of 2011, 2013, and 2017, the Bitcoin RSI levels crossed 95 and stayed there for nearly 3 months.

#bitcoin monthly RSI is not even 95. In 2011, 2013 and 2017 bull markets we had at least 3 months above 95. Still early. pic.twitter.com/1RfnnelACt

— PlanB (@100trillionUSD) March 27, 2021

Further citing the chart of his S2F model, PlanB writes: “IMO we are only ~4 months into the bull market and nowhere near the end of it .. #bitcoin is just getting started”.

There’s been a lot of discussion as to where is Bitcoin (BTC) heading from the current levels. Also, a few popular analysts have suggested that BTC is poised to easily cross $100K levels by the end of this year.

Another on-chain data provider Santiment notes that the social sentiment for BTC and ETH is bearish at this point. Interestingly, the data provider points out that every time this has happened, prices have moved north.

???? Our #cryptotwitter weighted social sentiment metric indicates that $BTC & $ETH moods remain #bearish. Prices generally move opposite to crowd expectation. #Bitcoin's last extended period of negativity resulted in a jump from $47.5k to $54.1k in 3 days. https://t.co/6BoyAhUEWi pic.twitter.com/uTDXGKks5V

— Santiment (@santimentfeed) March 27, 2021

Bitcoin’s Role At the Macro Levels and Rising Institutional Interest

Before the COVID-driven financial crisis of 2020, BTC’s role with the global financial market was largely uncorrelated. However, as institutions have started participating on a large scale, Bitcoin’s Correlation with the S&P 500 has jumped significantly.

As Glassnode reports: “This drastic shift in correlation pattern is primarily driven by the increasingly overlapping investor base of crypto and equity markets”.

Mike McGlone, the senior commodity analyst at Bloomberg Intelligence notes that Bitcoin (BTC) is on a transition to becoming the Risk-off reserve asset in 2021. He also notes that Bitcoin institutional products like the Grayscale Bitcoin Trust (GBTC) are gaining much popularity and outperformed giants like 50% this year. However, the increasing probability of a U.S. Bitcoin ETF is pushing the GBTC to trade at a discount.

Finally, he goes on to add that the biggest benefit that Bitcoin (BTC) enjoys over other asset classes is its limited supply. As per McGlone, what really matters for BTC is its increasing demand and adoption. “The potential launch of Bitcoin ETPs in the U.S. should keep the price buoyed. Increasing institutional demand, notably into corporate treasuries and accolades from a few billionaires, are part” he adds.

#Crypto Demand. What Really Matters for #Bitcoin: Increasing Demand and Adoption –
The potential launch of Bitcoin ETPs in the U.S. should keep the price buoyed. Increasing institutional demand, notably into corporate treasuries and accolades from a few billionaires, are part pic.twitter.com/N8ktr4GICo

— Mike McGlone (@mikemcglone11) March 26, 2021