Bitcoin (BTC), according to the latest data, is heading for what is mathematically “programmed”, at least $200,000 or more.
TechDev, a popular Twitter commentator, highlighted bullish behavior in Bitcoin’s relative strength index (RSI) through a series tweets.
2021 Bitcoin RSI follows the same pattern
Although still below target stock-to-flow targets, BTC/USD has bullish price forecasts for this year and beyond.
The RSI is a classic indicator that can be used to identify overbought or oversold markets at a specific price. It is joining them and suggesting that the second phase in the 2021 bull market is just beginning.
As the Bitcoin price movement has been in four-year cycles over the years, so has RSI’s behavior over time.
“Each cycle has experienced 2 peaks. TechDev explained that 2021 is now moving towards its second peak.
Each four-year cycle sees RSI reach a peak at a slightly lower level than the previous. This helps identify a top cycle slightly ahead of time. It is not an exact science to determine where BTC/USD will be at any given time.
TechDev said, “Interesting note the 8-year downtrending resistance.”
“We reached that, and it’s probably the top. Or at the very least, a place where you can seriously reevaluate your risk.
Bitcoin RSI vs. BTC/USD annotated graph. Source: TechDev/ Twitter
Are you “too programmed?”
Additional figures show that the BTC top price could be $200,000 or higher.
Related: The BTC bull market has at least six months to go — 5 things you should be watching in Bitcoin this week
TechDev also added a chart that shows fibonacci levels, showing that 200-300K Bitcoin seems almost too programmed.
These also depend on the 4-year halving cycle. Each peak is an order of magnitude greater than the previous. This means that the $20,000 of 2017 should be transformed into anything between $200,000 and $300,000.
This coincides neatly with the stock-to–flow cross-asset model (S2FX), which predicts an average price at $288,000 for the current halving cycle, which will end in 2024.
Creator PlanB however stated that local highs could easily have been twice that of the average during that period, putting Bitcoin at more than half a million.
Eileen Wilson –Technology and Energy
My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.