Bitcoin To Still Face Challenges Despite Latest Bullish Move, Says Analyst Benjamin Cowen

Bitcoin has seen a successful beginning of 2023, and things are looking pretty optimistic for the coin. Check out the latest reports about the price of the king coin.

A popular crypto analyst said that one closely followed indicator suggests that Bitcoin (BTC) still has much to prove even after we saw a strong rally that the king coin performed.

In a new strategy session, Benjamin Cowen said that Bitcoin’s Relative Strength Index (RSI) remains at historical lows.

The RSI is a momentum indicator that aims to determine if an asset is currently overbought or oversold.

“It’s a very nice move by Bitcoin from all the way down from $15,000 back up to $21,000. Note that the monthly RSI in November went lower than where it was in June. The monthly RSI is back up to around 44 to 45. What I want to do is draw a line across where it currently is.”

The analyst continued and explained the following:

“Where it currently sits just above this low [in 2019] and it sits basically at the same level as that one [in 2015]. Bitcoin still has something to prove here. It still needs to actually close above these levels and continue higher before it’s actually going to show any compelling evidence here on the monthly time frame.”

Cowen also stated the fact that investors should keep an eye on BTC’s RSI. This reportedly needs to rise above the historic lows to confirm that BTC will flip its current resistance level into support.

“And what’s interesting this time is that despite this move up back to $21,000 we’re just above the levels we were at in December 2018. So the thing that I think we have to look out for is can the monthly RSI actually get above these levels that it was out over here [in 2015] and then over here [in 2019]?”

At the moment of writing this article, BTC is trading in the red and the king coin is priced at $29,799.