A crypto analyst thinks that Bitcoin (BTC) reflects past rallies and may be on the verge of making big gains.
Popular analyst TechDev says that BTC’s current techniques are similar to its structure in late 2020, when the leading cryptocurrency consolidated below $20,000 before skyrocketing to $64,000.
“Last time in this cycle, BTC tried to break the weekly ATH (all-time high)… Stoch RSI [stochastic relative strength index] maxed out and consolidated below for 3-4 weeks before a strong break to the upside. While comforting, the fall is confusing. ”
While RSIs measure the speed and rate of change in price movements, the stochastic RSI evaluates such data over a period of time.
The analyst then compares the Bitcoin charts for 2013, 2017 and 2021. According to TechDev, Bitcoin is currently trading above the historically significant 1.618 Fibonacci extension level. During the 2013 and 2017 bull cycles, Bitcoin ignited parabolic rallies after removing the 1.618 Fibonacci area.
Finally, TechDev highlighted four separate two-week indicators across four BTC bull runs to indicate when to consider bearish.
“You will see BTC drop as these 2-week indicators approach their critical zone. ”
RVI stands for relative strength index and measures the final opinion about a particular asset. The indicator (VI) evaluates the start of a new trend or the momentum within an existing trend.
