Bitcoin (BTC) is headed to what is arguably a mathematically “programmed” all-time high of $200,000 or more, hints the latest data.
In a series of tweets on Oct. 4, popular Twitter commentator TechDev highlighted familiar bullish behavior in Bitcoin’s relative strength index (RSI).
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2021 Bitcoin RSI simply follows the pattern
While still lingering below targets, such as those of the Stock-to-Flow model, BTC/USD is not short on bullish price predictions for this year and beyond.
The relative strength index (RSI), a classic indicator used for identifying overbought and oversold markets at a particular price, is joining them, suggesting that the second phase of the 2021 bull run is just getting started.
Just as Bitcoin price action has gone in four-year cycles, so too has the RSI exhibited patterns of behavior through the years.
“Each cycle has had 2 peaks. 2021 now moving toward its second,” TechDev explained.
In each four-year cycle, the RSI hits a peak at a level slightly lower than the last — this likewise helps to identify a cycle top slightly in advance. Where BTC/USD will be at the time, however, is a much less exact science.
“Interesting to note the eight-year down-trending resistance,” TechDev added.
“We hit that and it’s probably top. Or at least a place to seriously re-evaluate risk.”
“Too programmed”?
Further figures suggest that the BTC price top this time around could be $200,000 or more.
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“200–300K #Bitcoin looks almost too programmed,” TechDev added alongside a different chart showing Fibonacci levels.
These likewise hinge on the four-year halving cycle, with each peak an order of magnitude higher than the last. For 2021, this means that the $20,000 peak from 2017 should become anything from $200,000 to $300,000.
This neatly coincides with the Stock-to-Flow Cross-Asset model, which calls for an average price of $288,000 during the current halving cycle ending in 2024.
Stock-to-Flow creator PlanB has nonetheless said that local highs during that time could easily be double that average, placing Bitcoin at over half a million dollars.
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