- Bitcoin rally climbs past the 50-day moving average
- RSI has broken beyond the 56 marks and gotten to a high of 61
- Bitcoin Lightning Network adoption high
Bitcoin has been experiencing a small bull rally over the last week, going up some 10% and scraping against $4000 – even passing it briefly on some exchanges. Naturally, this has raised speculation that a new BTC rally is just around the corner.
Trade volume spiking
The leading cryptocurrency by market value saw a bullish Monday and reached an eleven month high trading volume as per data from Bitfinex. The small Bitcoin rally saw BTC climb past the 50 days moving average with some investors wondering if this might finally be it.
Bitcoin started the day by trading around $3,800 and some experts believe it is headed towards the $4,500 mark, and the bullish price is expected to continue rising in the coming days. By entering the overbought territory, BTC now shows a strong probability of entertaining a little sideways movements before it finally begins climb upwards.
That said, experts believe the upside movement for the leading cryptocurrency is now more probable than ever and that the price could quickly test the current resistance levels. Should Bitcoin test the sell walls and meet strong rejection, the bulls could be convinced it hasn’t bottomed yet.
RSI Breaks beyond the 56 Mark
Bitcoin has remained under $3,700 for the last one and a half months with several tryouts for breaking up. While resistance was located at the $3,800 and $3.840 area, that has now been broken, and the rally seems to be headed towards the $4,000 mark. The old volatile move appears to have continued as the RSI levels remained at $3650, $3600 and $3,500. The daily chart’s RSI has broken beyond the 56 marks and gotten to a high of 61. You want to remember that the last time RSI was above 60 was at the beginning of September 2018, when Bitcoin’s price stood at $7,000 a coin.
Lightning Network Capacity Up
In the meantime, Bitcoin’s Lightning Network has shown signs of growing faster than the developers may have expected to increase its capacity. The Lightning Network is the main solution pushed to help the coin scale up and handle all the users and transactions expected as the Bitcoin buzz continues.
By adding an extra layer to Bitcoin’s blockchain, LN allows users to create a channel between users to be able to transfer money via a two-way street with the smallest amount of fees. Experts believe with the Lightning network’s progress the ecosystem is breaking new records weekly by adding the number of nodes relying upon transactions giving the blockchain more payment channels and a good overall financial capacity.