Bitcoin: What this metric says about BTC’s price trends
- There is a difference in the RSI data from Santiment and TradingView.
- Their implications remain bullish despite the minor differences.
In a recent post on X (formerly Twitter), Santiment noted that Bitcoin’s [BTC] prices had a strong reason to bounce higher. Although AMBCrypto’s analysis agreed with this finding, there were some interesting nuances in there.
The ascent past the $43k resistance on the 20th of December was an encouraging sign of bullish strength. A recent AMBCrypto report highlighted that miner revenue was high, and rising transaction fees contributed to this.
A closer look at the metrics
AMBCrypto took a look at Santiment and noted that the social volume decreased over the weekend. This has been a consistent trend stretching back months, so it wasn’t a surprise.
The address count with 100+ BTC rose from 15941 on the 19th of December to 15956 on the 20th of December.
The age-consumed metric saw a spike on the 18th of December and reflected a possible increase in selling pressure. Since then, it has not seen major surges.
As the Santiment post highlighted, the RSI fell to 42.09 on the 19th of December before bouncing to 50.38 on the 20th of December.
Yet, it must be noted that Santiment’s data is calculated slightly differently from the go-to platform for technical analysis, TradingView.
On TradingView, the RSI on the one-day chart for the spot BTC market on Binance was at 57 on the 19th of December. On the 17th of December, it was at 53.8, which was nowhere close to the 42.09 value we saw on Santiment.
Even though the RSI formula is the same, minor variations in rounding could lead to a discrepancy. Differences in time zones could see different daily closes used as well.
Moreover, Santiment might aggregate data differently, while the chart above relies solely on data from Binance.
On the TradingView chart, the RSI was at 45 on the 12th of October, but has not reached that level since. A drop below 50 would be an early sign that momentum has begun to shift in favor of the sellers.
Does that mean Bitcoin might not be poised for a bounce?
The thing that both charts agreed on was that Bitcoin continued to have a bullish bias. The RSI being above neutral 50 meant the buyers were still in control at press time, and the technical structure on the one-day chart remained in favor of the bulls.
Read Bitcoin’s [BTC] Price Prediction 2023-24
BTC was already above the $43k resistance but struggled to break above the local resistance at $44.25k. AMBCrypto noted that the Open Interest has trended higher since the 19th of December, a sign that sentiment was swaying bullishly again.
It is expected that a move past the $44.2k local resistance would see another influx of capital to the futures markets and support further gains.