Bitcoin surpasses $44,000, RSI forms bullish signal

Bitcoin performed quite well on February 15th. As the price fell towards almost $40,000, it suddenly changed direction.

According to data from CoinMarketCap, Bitcoin and other cryptocurrencies surged Tuesday, reversing previous declines.

Bitcoin hit an intraday high of $44,409, ETH broke through $3,000 and altcoins are up 3% to 10%. Equities also rose, in part due to lower Treasury yields.

BTC/USD 4 hour chart | Source: TradingView

The RSI forms a classic bullish signal

Data from TradingView shows that BTC rallied quickly on Tuesday and continued to surpass $44,000.

The classic Relative Strength Index (RSI) broke out on the lower 4-hour timeframe before the move, taking the pair 6% higher than Monday’s low.

“I think these are the first signs of a trend break,” said the popular Twitter account Phoenix comment in a new post, adding that the price reclaiming and holding $45,500 will be “very important” for the bulls as it was last week’s high.

Source: Phoenix

The rally appears to have been triggered by an external factor. Amid the growing intensity of the Freedom Convoy protests originating in Canada, the government announced it would extend anti-money laundering oversight to cryptocurrency transactions.

“These changes cover all forms of trading in digital assets and cryptocurrencies,” Canadian Deputy Prime Minister Chrystia Freeland told a news conference.

Protests have long been a hot topic in bitcoin and crypto circles due to the controversial actions of crowdfunding platform GoFundMe and the subsequent hack of GiveSendGo, the alternative used to send donations to protesters.

Just like Russia’s crypto ban last month, Bitcoin has not been negatively impacted.

Meanwhile, bitcoin services began ramping up their ongoing support for the movement, including open-source payment gateway BTCPay.

Robert Breedlove, Host of the What Is Money? Podcast summary:

“Use money that can’t be stopped by anyone, then you can ignore all their orders and live freely.”

The market should remain cautious

diagram BTC/USD Daily | The source: trade view

US Treasury yields fell Tuesday morning as investors reverted to safe havens amid rising geopolitical tensions between Russia and Ukraine. The words of Russian Foreign Minister Sergei Lavrov to Vladimir Putin seem to imply that Russia is likely to continue talks with the EU and NATO on the Ukraine issue.

IntoTheBlock suggests that markets should remain cautious as Bitcoin’s swap volume is currently around 70% lower than it will be in 2021. The overall volume of buy orders placed by buyers in BTC perpetual swaps is decreasing overall. Perpetual swaps are a type of cryptocurrency market derivatives product that is similar to a traditional futures contract.

High swap volume could indicate near-term buying pressure and investor interest. Bitcoin perpetual swap trading has failed to keep up with the recent rise in spot prices after a 2022 drop. This could indicate the caution of derivatives traders. To bolster recent gains, some analysts are expecting volume to continue increasing.

The Crypto Fear and Greed Index is currently in the “fear” zone (at 46). This index uses multiple factors to generate a nominal sentiment score ranging from 0 to 100. There’s a chance he’ll recover into the “neutral” zone.

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