Bitcoin Primed For November 2020-Esque Meteoric Price Growth Amid Extreme Compression: Pundit
Bitcoin’s movements have been unremarkable in the past week, weakly wobbling seven days after its much-awaited halving event. At press time, the Bitcoin price hovers at $63,774 after barely budging over the week. The lackluster price action came alongside a rush of money from the newly approved U.S. spot Bitcoin exchange-traded funds (ETFs).
However, a well-known crypto strategist sees an epic bull plot ahead for Bitcoin.
Why BTC Could Repeat Nov 2020 Price Eruption
Anonymous analyst TechDev took to the X micro-blogging platform to note that BTC’s two-month chart conditions indicate that the crypto market leader is about to go turbo-parabolic.
TechDev forecasts that Bitcoin will surge by more than 110%. This would mark a repeat of the November 2020 price move, when BTC rocketed from roughly $13,000 to around $29,000 within two months.
An accompanying chart highlights Bitcoin’s meteoric rallies in 2013, 2016, and 2020. During these three instances, BTC’s momentum indicator — the relative strength index (RSI) — had a bullish reading of 70.
#Bitcoin‘s 2M candle is right on the candle body high, soon after max compression.
As RSI is about to break 70.
These have been the conditions which led to the last 3 parabolic accelerations.
I suspect this next 2 month candle will be as tall as Nov 2020’s. pic.twitter.com/B7Dnjf8NWl
— TechDev (@TechDev_52) April 27, 2024
TechDev further notes that Bitcoin’s volatility indicator, as indicated by Bollinger Band Width (BBW), bottomed out during the three times. It’s worth noting that an extended period of low volatility usually ushers in a strong directional bias, meaning BTC was gearing up for a big move.
The Only Way For Bitcoin Is Up?
TechDev further suggested that Bitcoin is unlikely to undergo a price collapse.
“Please also point out the ‘pullbacks/crashes/dumps’ many have freaked about over the last eight months.”
While TechDev remains highly optimistic about the possibility of another ballistic Bitcoin rally, fellow cryptocurrency strategist DonAlt is rather cautious.
DonAlt warns that support at the $60,000 level looks weak after getting tested several times.
“Back to the same old level. The more often it’s tested the more likely it is to break. I think even bulls would want to get a washout below it at this point. Complacency until proven otherwise (as in until $68,000 is reclaimed or range is lost and then reclaimed again),” the analyst posited.
For crypto expert Michaël van de Poppe, Bitcoin will likely remain stuck in a range for the next 3-6 months. He, however, expects altcoins to diverge greatly to deliver much-awaited gains for holders.
Filed under: Bitcoin - @ April 28, 2024 7:19 pm