One crypto analyst thinks that Bitcoin (BTC) is mirroring past rallies and could be on the cusp of achieving massive gains.
The pseudonymous crypto market analyst TechDev tells his 183,600 Twitter followers that BTC’s current technicals resemble its late 2020 structure when the king crypto consolidated below $20,000 before blasting off to $64,000.
“Last time this cycle, BTC tried to break ATH (all-time high) on the weekly…
It consolidated beneath for 3-4 weeks with Stoch RSI [stochastic relative strength index] maxed out before a strong break to the upside.
While comforting, the bearish sentiment is confusing.”
RSIs measure the speed and rate of change in price movements, while the stochastic RSI assesses such data over a set period.
The analyst next compares the Bitcoin charts from 2013, 2017, and 2021. According to TechDev, Bitcoin is currently grinding above the 1.618 Fibonacci extension level, which he notes is a historically significant level. During the 2013 and 2017 bull cycles, Bitcoin ignited parabolic rallies after it took out the 1.618 Fibonacci area.
“You ready for what’s coming?
I personally am not betting on this time being different for Bitcoin.”
At time of writing, Bitcoin is trading at $62,311.
Finally, TechDev highlights four separate two-week indicators across four BTC bull runs to indicate when he would consider turning bearish.
“You’ll see me flip bearish on BTC as these 2-week indicators approach their critical zones.
If you flip sooner, that is fine, it will just have to be in contrast to all of these.
Everyone with respect and a data-supported thesis deserves respect themselves.”
RVI stands for relative vigor index and measures the level of recent conviction in a particular asset. A vortex indicator (VI) assesses the beginning of a new trend or the momentum within an existing trend.
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Featured Image: Shutterstock/MaxFX/Konstantin Faraktinov