A popular cryptocurrency analyst has recently revealed that the price of the flagship cryptocurrency Bitcoin (BTC) has been eerily following a trend similar to what occurred three years ago, which would suggest it could soon start surging toward the $40,000 and beyond.
According to the popular cryptocurrency analyst Kevin Svenson, who shared his findings with his over 130,000 followers on the microblogging platform X (formerly known as Twitter), Bitcoin had a “strikingly similar setup” three years ago, with a specific level on its Relative Strength Index (RSI) being seen as the “target before the next leg up.”
According to Investopedia, the RSI is a momentum indicator that’s used in technical analysis to measure the “magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset.”
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The RSI can have a reading between 0 and 100, with values above 70 indicating that an asset is starting to become overbought or overvalued, and values below 30 indicating an asset is becoming oversold or undervalued.
The trader’s charts suggest that Bitcoin may undergo another adjustment, allowing the daily RSI to drop to the 50 level before the next surge commences. Svenson points out that historically, Bitcoin enthusiasts have been particularly active in the last month of a pre-halving year.
The halving event, which will cut the coinbase reward miners receive for each mined block in, is expected to occur in April 2024. The halving has led to various major Bitcoin price predictions, including one from Standard Chartered, which says it will surpass $100,000 by the end of next year.
Featured image via Unsplash.
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- Source: https://www.cryptoglobe.com/latest/2023/11/bitcoin-btc-forms-strikingly-similar-setup-seen-ahead-of-massive-price-surge-three-years-ago/
