Bitcoin’s Relative Strength Index (RSI) has broken out from a seven months downtrend for the first time today.
As can be seen above, the RSI has been making lower highs, but now upside momentum has gone up high enough to break the trend of lower highs in momentum, creating a local higher high.
That’s a potential indicator that there has been some bullish strength on display recently after bitcoin briefly dipped below $30,000 for the third time.
Bitcoin spent precisely 24 hours below $30,000, to then rise up more than 10% to currently above $32,000.
The big question is whether that’s just the beginning of further legs up, or whether it turns downwards again to go below $28,000.
This RSI breakout suggests the former is more likely with bitcoin ranging for the past two months since May when it first reached these levels.
Any upwards movement therefore may be slow and cautious as bulls need to build up some confidence by maintaining ground and gradually moving up if this breakout plays out.