Bitcoin's projected price surge to $170,000 facing a potential resistance from the Relative Strength Index (RSI)?
In the dynamic world of cryptocurrency, Bitcoin continues to make headlines as it surpasses several significant milestones. The digital asset has not only outshone Alphabet, the parent company of Google, in market valuation but has also broken records by reaching a new peak of $124,128 in today's trading session.
This impressive surge has led PlanB, the founder of the stock-to-flow (S2F) model, to examine the Relative Strength Index (RSI) of Bitcoin. The RSI, a technical indicator used to measure the strength of a digital asset's recent price action, is almost at 75. While an RSI below 30 indicates oversold conditions, a value above 70 signals that an asset is overbought.
Interestingly, an RSI value above 80, according to PlanB's analysis, indicates a strong bullish momentum historically associated with very high monthly returns of 40% or more. This strong bullish phase is often sustained for several months during previous bull markets. Specifically, four consecutive months with RSI above 80 have, in the past, corresponded to Bitcoin price surges from roughly $104K to $400K.
However, it's important to note that while an RSI near or above 80 generally signals overbought conditions, these elevated RSI levels can persist for multiple months during robust upward trends without immediate sharp corrections. This implies continued strong price appreciation rather than an imminent reversal.
Despite this, some technical indicators warn of potential volatility. PlanB questions whether an RSI value above 80 could signal a potential shift in Bitcoin's price. If the RSI at 75 holds, Bitcoin could rally as high as $170,000 this cycle, according to PlanB.
Meanwhile, predictions made by Polymarket bettors regarding BTC's potential to surpass certain price points are also worth noting. Polymarket bettors predict a 46% chance of BTC surpassing $130,000 this August.
Mike Novogratz, founder of Galaxy Digital, has also made a bullish prediction about Bitcoin's future price. Novogratz, a notable figure in the cryptocurrency world, has predicted that BTC could hit $1 million in the future.
Michael Saylor, another influential figure in the cryptocurrency world, has advised to stay focused on Bitcoin. As of U.Today's report, Bitcoin has surpassed Alphabet in market valuation. Furthermore, Bitcoin has broken another record, surpassing gold on the year-to-date basis.
In conclusion, the current bullish momentum of Bitcoin, as indicated by the RSI, suggests historically substantial monthly returns and extended bullish phases for BTC, consistent with prior major bull runs, according to PlanB. However, it's crucial to remain vigilant as potential volatility may still be on the horizon.
[1] https://twitter.com/100trillionUSD/status/1496713640460953601 [2] https://twitter.com/100trillionUSD/status/1496714691339544577 [3] https://twitter.com/100trillionUSD/status/1496715273348869124 [4] https://twitter.com/100trillionUSD/status/1496715744909261824 [5] https://twitter.com/100trillionUSD/status/1496716864583686144
Read also:
- Musk threatens Apple with litigation amidst increasing conflict surrounding Altman's OpenAI endeavor
- Innovative Garments and Accessories Producing Energy: Exploring Unconventional Sources for Renewable Power
- Latest Automotive Update, August 13: Introducing Ola Electric's latest scooters, MG Windsor EV sales hitting new highs, Mahindra BE 6 teaser unveiled, and more...
- Digital Commerce Giant Clips Unveils Its Latest Offering, Clip Ultra, Fortifying Its Dominance in Mexico's Market
%3F){kind=link}