Analyst and trader Kevin Swanson claims that an indicator that has reliably predicted an uptrend in Bitcoin (BTC) has just worked for the king of cryptocurrencies.
In a new video, Swanson tells his 78,900 YouTube subscribers that the Relative Strength Index (RSI) indicator is showing a pattern on the daily chart that has previously driven Bitcoin up significantly.
The RSI indicator is a momentum oscillator that is used to determine whether an asset is oversold or overbought.
“Most of the time when we break out of this daily RSI downtrend, the RSI comes back, hits new support, and what happens after that? A big move up…
…at least it signals that some upward movement is coming
And right now we’re in a retest of that RSI downtrend, so if we bounce off that previous RSI resistance as new support… That would signal another big move higher. Or at least some kind of move higher, at least into resistance. Or a breakout into new all-time highs.”
According to Svensson, the current Bitcoin price movement is a continuation of a pattern that emerged in early 2023, when BTC traded sideways for several months before exploding.
“These long sideways ranges… Bitcoin has a higher market cap now, it may take a little longer for the price to go up. But I’m still bullish, I remain bullish.”
On when Bitcoin might reach the peak of its bull market, Swanson says:
“On average, 40 to 80 weeks pass after the halving [is when Bitcoin reaches its new top]…
We’re only 13 or 14 weeks post-halving. So theoretically we have at least another 25 weeks, which is January, before we can hit week 40… Week 80 has the highest percentage of top hits.
So no matter how it plays out, you never know exactly what’s going to happen. But 40-80 weeks… you’ve got another six months to get into the 40-week zone.”
At the time of writing, Bitcoin is trading at $61,284.
Generated image: Flux
