Forget the Dip – Weekly Chart Says Bitcoin Is Ready to Run

Bitcoin (BTC)’s long-term technical structure is flashing a familiar signal, one that historically preceded some of its most powerful rallies.

Indeed, a new weekly chart shared by renowned cryptocurrency trading specialist Trader Tardigrade on January 21 shows Bitcoin’s Relative Strength Index (RSI) compressing into a breakout formation that mirrors past cycle ignition phases.

If the pattern continues to play out, BTC could be entering the early stages of its next parabolic leg, and history suggests this is where things get interesting.

Bitcoin’s Weekly RSI Is Entering A Launch Phase

The weekly RSI has quietly been building a base for months, a structure that looks nearly identical to the setup that preceded Bitcoin’s 2020-2021 bull run and the 2023-2024 breakout.

On the chart, RSI previously bottomed in a long accumulation zone, momentum slowly rebuilt above structural support, and the price followed with a sustained multi-month rally. 

Now, that same pattern is forming again. In previous cycles, this exact RSI compression phase marked the transition from consolidation to expansion, where BTC stopped ranging and started trending.

The Hidden Engine Behind Bitcoin’s Biggest Moves

RSI on the weekly timeframe is one of Bitcoin’s most reliable macro indicators. Historically, when weekly RSI reclaims bullish territory, holds higher lows, and breaks out of long compression ranges, it signals the return of long-term momentum, not just short-term speculation.

That’s the kind of momentum that drives multi-month uptrends, institutional positioning, exchange-traded fund (ETF) accumulation, and parabolic price discovery phases. In short, this is how bull markets begin.

The Structure That Powered Bitcoin’s Last Mega Rally

The current setup mirrors Bitcoin’s breakout structure from the late 2019-2020 accumulation, early 2023-2024 breakout, and prior post-halving expansions. Each time, Bitcoin spent months compressing momentum before unleashing a vertical expansion phase.

And now, the pattern includes it all: the RSI base formation, momentum compression, structural breakout, and trend acceleration. That final phase is where Bitcoin historically delivers its largest percentage gains.

Why This Setup Matters Now

This RSI structure is forming at a time when Bitcoin ETFs are absorbing supply, long-term holders seem inactive, exchange balances keep declining, and liquidity conditions are improving.

Technicals and fundamentals are aligning in a combination that traditionally leads to explosive upside. As Trader Tardigrade summed it up:

“Bitcoin is gearing up for a surge.”

What Comes Next If The Pattern Holds

If Bitcoin continues following its historical roadmap, the next phase would be momentum expansion, weekly breakout continuation, higher high confirmation, and acceleration toward new cycle highs.

This doesn’t mean straight up, but structurally, Bitcoin appears to be transitioning from accumulation into expansion. At the moment, it’s changing hands at the price of $88,500.86, down 2.4% on the day, declining 6.6% across the week, and recording a 1.3% dip over the past month, per the latest chart data.

All things considered, BTC’s weekly RSI is flashing the same setup that has preceded every major bull market of the past decade. The compression phase is ending, the momentum engine is warming up, and the trend is beginning to turn. If history rhymes once again, Bitcoin may be preparing for its next major surge.

Bitcoin Price Today

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