Explosive bitcoin prices may seem hard to imagine, but for now, bullish metrics are just repeating past bull-market years. The flagship crypto is headed to what seems to be a mathematically “programmed” all-time high of over $200,000, based on the latest data.
On October 4, one popular Twitter commentator TechDev highlighted some familiar bullish momentum in a series of tweets. He tweeted about Bitcoin’s relative strength index (RSI). This year, it seems like Bitcoin RSI is following a predefined pattern. Although it is still hovering below the targets set by stock-to-flow (S2F), Bitcoin is not short on bullish price predictions for 2021 and beyond.
RSI is a classic indicator that is used for identifying the overbought and oversold markets at a specific price, seems to be joining them, indicating that the second phase of the 2021 bull run is now getting started.
Just as BTC price action has gone in four-year cycles, so too has the RSI that exhibited defined patterns of behavior over the years. TechDev explained:
“Each cycle has had 2 peaks. 2021 now moving toward its second.”
In every 4-year cycle, RSI hits a peak at levels slightly lower than the last time. This movement likewise helps in identifying a cycle top a bit in advance. Where bitcoin will be used at the time, nonetheless, is a much less exact science. TechDev added:
“Interesting to note the 8-year downtrend resistance. We hit that and it’s probably top. Or at least a place to seriously re-evaluate risk.”
‘Too Programmed’?
More figures indicate that the bitcoin price top this time around might be $200,000 or more. TechDev added alongside a different chart showing Fibonacci levels:
“200-300K Bitcoin looks almost too programmed.”
These figures are pegged on the 4-year halving cycle, with every peak an order of magnitude higher than the last. For 2021, it means that $20,000 from 2017should become anything between $200,000 and $300,000. This projection precisely coincides with the stock-to-flow cross-asset (S2FX) model. S2FX calls for an average price of $288,000 in the current halving cycle ending in 2024.
PlanB has nevertheless said that local highs during the time may easily be double that average, placing Bitcoin at more than half a million dollars.
