Bitcoin's Daily RSI Surpasses 85, A Rare Milestone

Bitcoin's daily Relative Strength Index (RSI) has reached an unprecedented level of 85, a milestone that has only been achieved near major bullish trends in the past.

Analyst Sykodelic reviewed ten years of price history and found that every time the daily RSI crossed this threshold, it was near the peak of a consolidated uptrend or at its beginning. 'Not even when Bitcoin was worth $10 in 2011 was there a daily RSI reading of 85 or higher in a bear market,' he noted.

The current price action is being described as 'vertical accumulation' by Sykodelic, which begins with an entry into overbought territory followed by a rally that offers few entry opportunities. In this pattern, the price breaks through resistance levels without major pullbacks while the market waits for a correction that never comes.

CryptoQuant's Bull Score has risen from 30 to 80 points, with eight out of ten indicators in bullish territory. However, the firm requires Bitcoin to close the day above its 365-day moving average, located near $83,000, to confirm the bull cycle.