A broadly adopted crypto analyst says that one basic indicator may dictate Bitcoin’s (BTC) subsequent worth transfer.
In a brand new video replace, crypto strategist Benjamin Cowen tells his 803,000 YouTube subscribers that the crypto king’s relative energy index (RSI) – a momentum oscillator used to investigate whether or not an asset is overbought or oversold – is giving “uncomfortable” vibes.
Taking a look at two-week candles, Cowen notes that each single considered one of Bitcoin’s worth tops coincided with the RSI hitting the identical downward resistance degree – one thing that has already occurred in March.
“We will additionally have a look at this on a two-week time-frame as a result of I really suppose that the RSI is a little bit bit extra helpful the longer the time-frame that you just’re utilizing… While you first have a look at the two-week RSI there, it’s a little bit of an uncomfortable feeling…
You possibly can see that the two-week RSI has tagged this higher pattern line – there’s this downward pattern line that’s tagged close to main tops for Bitcoin. We tagged it in 2011 and in 2013, after which once more later in 2013. We tagged it [also] right here in 2017.
Then we additionally tagged it in January of 2021, however then we all know that Bitcoin went barely greater even after that, however once more there’s no denying that whenever you have a look at this, it in all probability makes you are feeling considerably uncomfortable. That’s why I say it’s a good suggestion to stay to the chance metrics.”
Nevertheless, trying on the month-to-month chart, Cowen notes the potential of BTC “pulling a 2019” the place the RSI initially fails to breach the 66 degree earlier than efficiently reaching the downward resistance degree that has beforehand known as tops.
“I’m wondering, is it going to only go up right here by the top of the 12 months after which type of the left translated peak involves fruition? Or is it going to tug a 2019 on us, and simply sort of fade for a little bit bit longer than folks suppose it’s going to. As a result of in 2019 you possibly can see that it had a very nice run however then the month-to-month RSI light from June of 2019 into March. So developing right here to the excessive, it dropped for about 9 months, so if it have been to try this right here, about 9 months would really put it in December of 2024.”
Bitcoin’s month-to-month RSI is at present sitting at 60.99, based on TradingView information.
BTC is buying and selling for $57,933 at time of writing, a 1.3% improve over the past 24 hours.
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