Popular quant analyst PlanB says that one key indicator suggests Bitcoin (BTC) will hit explosive new all-time highs in the coming months.
In a video update, the pseudonymous analyst tells his 211,000 YouTube subscribers that the monthly Relative Strength Index (RSI) indicator suggests Bitcoin’s bull market will continue and that the flagship crypto asset may soar close to half a million dollars.
[adinserter block="1"]The RSI is a momentum oscillator used to determine whether an asset is oversold or overbought. The RSI ranges from 0 to 100, with readings above 70 typically indicating that an asset is overbought, while readings below 30 suggest that it is oversold.
Says PlanB,
“In my opinion, from now on, we’ll see new all-time highs, so that would be $110,000 and higher, followed by more monthly close all-time highs. Usually, those all-time highs, they’re not alone. They come in groups.
Now, if we look at RSI, the relative strength index, currently it’s at 66, and that’s around the average RSI level of 65, the dark area here, the black area. And it has been around that average for more than a year now. In my opinion, how I read this chart is that Bitcoin spent a couple of years below that average of 65 and from now on, it will stay one or more years above the 65 average.”
The analyst believes the RSI will hit at least 80 for several months this cycle based on historic precedent, potentially increasing Bitcoin by 290% of its current value.
“In fact, I think we will see 80-plus RSI months again, at least four of them, just like in the bull markets in 2021, in 2017 and in 2013.
So I think we will see those high RSI numbers again – at least four times. And those high RSI numbers are associated, of course, with high monthly returns, monthly returns of over 40% per month. So if we have from the current level of on average $100,000, four months of 40% that would bring us already in the $400,000 area.”
Bitcoin is trading for $102,558 at time of writing, down 1.6% in the last 24 hours.
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