Throughout last week, BTC prices kept low. The price never crossed the $40,000 threshold. However, lately, BTC prices have shown a consistent upward trend. BTC prices consistently stayed above $37,000 during this period.
The recent consistently high price trend of BTC helped push its RSI score up. This was a deviation from the trend over the past few months.
However, despite the rising trend, when the BTC prices rose from $36,700 to $39,280, the prices of BTC still did not display the momentum required to breach the resistance level of $40,000.
What is giving hope now is the recent surge in RSI scores. The RSI score has risen from its previous low levels to enter the ‘oversold’ category.
The crypto market tracks RSI score closely. In recent months, since November, BTC’s RSI score reached unprecedented low levels.
Most people have been watching the trends in the price of BTC. The upwards surge in the RSI score was largely ignored. However, a close examination of the RSI score clearly indicates that BTC prices have already emerged from the falling trend. This does not mean everything is good now, but the improvement in RSI scores gives reasons for optimism.
Reason for Optimism
If one were to examine price data for BTC over the long term, it would reveal that in the entire year of 2021, BTC has been in consolidation mode. The prices now are the same that were there at this time last year. This is a clear indication of a ranging market.
The only difference, however, is that the supply of BTCs is reducing. The reduced supply, if it persists, will certainly have an impact on BTC prices in the future. Available information suggests that the trend of reduced BTC supply will persist throughout 2022.