A popular crypto analyst believes that three indicators indicate that Bitcoin (BTC) is far from its peak.
A crypto trader who goes by the pseudonym TechDev shares a chart with his 468,700 followers on social media platform X that shows the liquidity cycle, Bitcoin’s relative strength index (RSI), and the Fisher Transform indicator for BTC.
TechDev’s first chart shows a line for the price of Bitcoin and a line that compares the Chinese 10-year bond (CN10Y) to M2SL, a seasonally adjusted measure of the money supply in the United States.
Based on the trader’s chart, he appears to be suggesting that a CN10Y extension against M2SL could spark major Bitcoin rallies.
The RSI indicator is a momentum oscillator used to determine whether an asset is oversold or overbought. RSI values range from zero to 100, with a level between 70 and 100 indicating an asset is overbought and a level between zero and 30 indicating an asset is oversold.
TechDev also plots the Fisher indicator for Bitcoin to accurately spot trend reversals.
The analyst’s chart shows that both the RSI and the Fisher Transform indicator are showing patterns that look similar to the patterns that preceded BTC’s massive rally in 2017.
At the time of writing, Bitcoin is trading at $57,793.
Generated image: Midjourney
