Bitcoin Surges 23% In A Month, But Momentum Questions Remain

Bitcoin's price has surged from below $85,000 to a high of $104,700 over the past month, driven by a positive shift in investor sentiment and increased capital inflows, particularly through BTC exchange-traded funds (ETFs).

However, the cryptocurrency has shown signs of fatigue, failing to break out of the $102,000 – $105,000 consolidation range over the past week. This has raised questions about the authenticity of the recent bullish momentum.

Chartered Market Technician Tony Severino noted that Bitcoin's price action lacks a classic technical behavior typically associated with aggressive bullish impulses. He observed that the daily relative strength index (RSI) indicator on the Bitcoin price chart has not shown the rapid surge above the 70 threshold that historically coincides with significant bull runs.

The RSI is a momentum indicator used to estimate the speed and magnitude of an asset’s price changes. An RSI reading above 70 indicates an overbought market, while a value below 30 signals an oversold condition. Historically, Bitcoin bull runs have been marked by a rapid surge of the RSI oscillator above 70, reflecting overwhelming buying pressure.

Severino highlighted that while Bitcoin has been recovering from its early-year slump, the RSI has not exhibited the clean upward break typical of significant bullish expansions. He noted that the bullish impulse signaled by the RSI break above 70 could emerge at any moment, potentially leading to a breakout from the current consolidation range and a move toward its all-time high.

As of the latest update, Bitcoin is valued at around $103,676, with no significant price movements in the past 24 hours. The past day’s sluggishness reflects Bitcoin’s performance over the past week, with a mere 0.8% increase in the last seven days.