Benjamin Cowen, a popular crypto analyst, says he is keeping a close eye on an important indicator for the Bitcoin uptrend. But he says that even after making a strong rally, he points out that Bitcoin (BTC) still has a lot to prove.
In a new market review he posted on YouTube, Benjamin Cowen told his 782,000 YouTube subscribers that Bitcoin’s “Relative Strength Index” remains at historic lows. (Relative Strength Index: It is a momentum indicator and gives information about the overbought and oversold points of the asset.)
“Very nice move from $15,000 to $21,000 by bitcoin. Note that the monthly RSI in November was lower than in June. The monthly RSI has gone all the way back to 44 to 45. What I want to do is draw a line to where it is right now. Just above this low [in 2019] and basically at the same level [in 2015.] There is still something to be proven here for Bitcoin. It should still close above these levels before we show any convincing evidence here on the monthly timeframe and Keep in mind that in 2015, the monthly RSI basically hit lows for three quarters of the year. Until September, the monthly RSI didn’t really change at all. We’ve only been here for a few months in 2019.”
Meanwhile, Cowen also mentioned that the biggest cryptocurrency needs to break above historic lows to confirm that it has turned the current resistance level into support. He also advised investors to keep their eyes on the RSI indicator.
“And what’s really interesting this time is that although we’re back at $21,000, we’re still a little above the levels we were at in December 2018. So I think we need to keep an eye on the monthly RSI. It can really rise above the levels it was in 2015 and then in 2019. that.”