BTC Price Relies on $75K, Trader Says, Recalling Bitcoin’s 2017 Bull Run

Bitcoin (BTC) is silently adopting a significant characteristic from the 2016 bull market, which begins at $75,000. A popular trader, Jelle, highlighted in a post on X on May 24 that this could potentially trigger the next major breakout for BTC’s price action. The analysis of Bitcoin often draws attention to the similarities between the current bull cycle and previous cycles, particularly the ones in 2016-2017 and 2020-2021. While the 2024 cycle has already set a new all-time high before the block subsidy halving, there is still substantial data indicating that Bitcoin’s most significant gains are yet to come. Jelle believes that the relative strength index (RSI) plays a crucial role in this. RSI measures the extent to which an asset is overbought or oversold at a given level, and on weekly timeframes, BTC/USD is showing an exciting pattern. Jelle summarized, “Bitcoin is behaving incredibly similarly to early 2017.” A chart accompanying the post compared the performance of BTC/USD from January 2023 to the present with its journey to its 2017 peak of $20,000. Just like seven years ago, RSI is decreasing while the price is accelerating towards previous highs. Jelle explained, “There is a hidden bullish divergence and turbulent waters right around the previous all-time highs, right before the main breakout.” Historically, Bitcoin experiences its most significant upward movement when RSI is in the “overbought” zone above 70. These readings can persist for a considerable period before the BTC price rally becomes unsustainable. Opinions are divided regarding Bitcoin’s short-term prospects. Despite the preliminary approval of spot Ether (ETH) exchange-traded funds in the United States this week, the performance of both coins remains unchanged. BTC/USD is still rangebound, with some experts predicting a return to $60,000 or potentially even lower. Popular trader Credible Crypto and Michaël van de Poppe, founder and CEO of trading firm MNTrading, are among those anticipating this outcome. Van de Poppe noted that liquidity has been shifting from Bitcoin to Ether around the ETF launch but described the situation as “fine.” This article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.