Widely followed quant analyst PlanB is predicting more parabolic rallies for Bitcoin (BTC) to high price targets by the end of this year.
In a new strategy session, PlanB takes a look at Bitcoin’s monthly relative strength index (RSI).
[adinserter block="1"]The RSI is typically used as a momentum indicator and also to suggest overbought or oversold conditions.
PlanB notes that historically, at the peak of Bitcoin bull markets, BTC goes through multiple months with its RSI above 80 – characterized by the red dots on his chart.
With the monthly RSI quickly approaching 80, and considering BTC’s average gains during periods where the indicator was at such levels, PlanB says that he’s expecting an “absolute minimum” of $270,000 BTC this year.
“In fact, to be specific, I expect at least three, possibly four or five months of red dots which means an RSI of 80 and higher. Now what’s very interesting, is if we look, historically, at those points, where the RSI was 80 or higher, then we’ll see that the average return in those periods – the red dot areas – was 40% +.
So that means a one month of 40%+ means from today’s $100,000 [would be] $140,000 in February. And since I expect multiple months of red dots, at least three, three times 40% would bring us from $100,000 to $270,000…
So that’s the absolute minimum Bitcoin price that I expect in 2025: $270,000.”
At time of writing, BTC is trading at $96,789.
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