New research suggests that Bitcoin (BTC), has “at minimum one more upward impulse” before it reaches its all-time high.
TechDev, a popular analyst, stated that there is nothing unusual in BTC/USD 2022, in a series tweets.
Bitcoin 2021: Nothing to See Here
Sentiment has also taken a hit, with a 40% drawdown from November’s record high of $69,000. This is still ongoing.
TechDev is known for his positive outlook on Bitcoin, but there’s nothing to be concerned about.
He analyzed new wallet addresses in relation to price behavior and found that the last-year scenario, new address numbers making lower highs but price making higher highs, was far from unusual.
Two posts contained comments that said, “In 4 of the 6 corrections, we saw divergence in which price made higher highs while new addresses made lower highs.”
“… To me, all 6 have running corrections, which are also supported by decreasing volume.”
This low volume was previously reported as part of worries that BTC/USD could see significant moves due to a lack liquidity.
TechDev said that overall, the price behavior relative Fibonacci levels has been within historical norms. Therefore, there is no reason to believe that a new all-time high won’t be reached before a bearish phase.
He concluded that “our current correction (since February 2021) is occurring between the same two cycle log fibs as an ongoing correction has always been performed, with locally decreasing volume and new addresses.”
Bitcoin new addresses (2 week moving average) vs. Bitcoin/USD chart with Fibonacci levels. Source: TechDev/Twitter
Recovery in waiting
Cointelegraph reported that Bitcoin has seen a decline in interest over the past year, especially among retail investors.
Related: Top or Bottom? Bitcoin traders at odds about whether it will continue rising
However, the time is right for experienced traders, as leverage remains near its highest levels and institutions poised to reenter the market.
TechDev also began highlighting trends within Bitcoin’s relative strength indicator (RSI) in Q4. This again demonstrated that a higher all time high is due.
RSI is still significantly “oversold”, for BTC/USD according to data from TradingView and Cointelegraph Markets Pro. This has in the past resulted in a reversal and upward price pressure.
BTC/USD 1-day Candle Chart (Bitstamp), with RSI. Source: TradingView