A popular crypto trader thinks Bitcoin (BTC) is gearing up for a big breakout this month en route to fresh all-time highs.
The pseudonymous analyst known as TechDev says in a new analysis that BTC’s relative strength index (RSI) has built a bottoming structure and is flashing early signs of possibly reversing into a new leg up.
The RSI indicator is a momentum oscillator used to determine whether an asset is oversold or overbought. The RSI’s values range from zero to 100 with the level between 70 to 100 indicating that an asset is overbought while the zero to 30 level indicates that an asset is oversold.
Explains TechDev,
“We’re also at the same number of weeks from the prior impulse top as we were when the all-time high breakout began during the 2014-2017 period.
Looking more closely, we can see the potential for an RSI breakout forming. Compare this to the last time we saw a similar setup in the yellow zone. Then, the breakout in RSI was a key indicator of the larger market shift that followed.”
The analyst shares a chart indicating he expects Bitcoin to surge to around $90,000 by sometime in November or December.
“With confluence, that outlook puts a final consolidation against the upper trend line where it would be expected.
I’m eyeing mid-October for the breakout from this exhausting correction. On the high timeframe, it has formed a literal horizontal line on the high timeframes.
I’ll keep an eye on any potential deviations from the expected orange path and provide updates if we see any shifts.”
BTC is trading at $62,628 at time of writing. The top-ranked crypto asset by market cap is down almost 2% in the past 24 hours.
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