Bitcoin (BTC) is moving towards the record level of $ 200k and above, which is claimed to be mathematically “programmed” according to the latest data.
Popular Twitter commentator TechDev, In his post of October 4 You have spotted a familiar bullish signal in Bitcoin’s Relative Strength Index (RSI).
RSI follows a familiar pattern
Although it is below the forecast of some models, such as the stock flow model, BTC / USD is still the subject of bullish forecasts for this year and beyond.
A classic indicator used to detect when the market is too high or too low at a given price level, the RSI signals that the second phase of the 2021 bull market has just begun.
It may interest you: What is the Relative Strength Index (RSI)? How does it work?
Just as Bitcoin price action follows four-year cycles, the RSI has shown behavioral patterns over the years.
“Each cycle had two peaks. 2021 is now moving into phase two,” explained TechDev.
The RSI is climbing slightly lower than before in the second peak of each four-year cycle. This helps detect loop peaks beforehand. Predicting what level the BTC / USD pair will be in this situation is something of a science.
TechDev added: “The resistance to the eight-year downtrend should be noted.”
“This point will probably peak. At least at this level, the risk should be seriously reassessed.”
Other data reveals that the maximum price of BTC could be $ 200k or more this time.
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In their post, TechDev shared a chart showing Fibonacci levels, “The fact that Bitcoin reaches $ 200-300k seems almost on schedule.” he added.
Fibonacci levels are also based on four-year cycles, with each peak being many times higher than the previous one. In other words, the $ 20,000 peak seen in 2017 should be $ 200-300,000 in 2021.
The stock-to-flow cross-asset (S2FX) model also predicts that the price of Bitcoin will reach at least $ 288,000 by 2024.