A popular crypto strategist and trader is predicting that a parabolic rally is in store for Bitcoin (BTC) in the coming months as he unveils his huge price target for BTC this year.
Pseudonymous analyst TechDev tells his 363,500 Twitter followers that he’s looking at the inverted chart of Bitcoin and says that BTC is in a long-term uptrend.
TechDev’s bullish thesis is based on the idea that Bitcoin continues to respect the 20-month moving average (MA) as support.
“Bitcoin continues to reject off the 20-month MA in a clear multi-year downtrend of lower highs and lower lows.
Another dump does not seem far away.”
Traders sometimes invert charts to get a different perspective and see whether the inverted price action still supports their thesis. In Bitcoin’s case, TechDev says BTC will rally after hitting the 20-month MA just like it did in 2019 to 2020.
Looking at the weekly chart, the crypto analyst says he’s waiting for Bitcoin to move above the 50-week moving average to potentially ignite a parabolic run.
“Comparing weekly BTC candles with similar prints, at similar distances from the 50MA, at similar RSI [relative strength index] levels.
Watching for follow through.”
Based on TechDev’s chart, Bitcoin’s relative strength indicator (RSI), a momentum indicator, managed to reclaim support at $45,000 in April 2020. The rise in momentum preceded Bitcoin’s move above the 50-week moving average, which eventually launched BTC into a steep price climb.
TechDev appears to be looking at the same confluence of events to signal the next BTC surge.
The crypto analyst is also looking at the 11-year history of BTC’s price rises. According to TechDev, Bitcoin can potentially rally to $160,000 before the end of the year based on BTC’s tendency to top out at four standard deviations from the 50-week exponential moving average.
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