dailyhodl.com
A widely followed analyst believes that Bitcoin (BTC) is gearing up for a parabolic surge despite its recent price doldrums.
Pseudonymous crypto strategist TechDev tells his 447,600 followers on the social media platform X that conditions on Bitcoin’s two-month chart suggest that BTC is almost ready to witness a price explosion.
The analyst predicts that BTC will rally by over 120%, similar to what happened in late 2020 when Bitcoin surged from around $13,000 to over $29,000 in just two months.
“Bitcoin’s two-month candle is right on the candle body high, soon after max compression.
As RSI (relative strength index) is about to break 70.
These have been the conditions which led to the last three parabolic accelerations.
I suspect this next two-month candle will be as tall as Nov 2020.”
Looking at the trader’s chart, he appears to point out that Bitcoin saw parabolic surges in 2013, 2016 and 2020 when its momentum indicator, the relative strength index (RSI), went above the bullish 70 level.
He also says that Bitcoin’s volatility indicator – the Bollinger Bands Width (BBW) – bottomed out during the same three instances, indicating that BTC was preparing for a big price explosion.
As Bitcoin replicates the exact conditions, TechDev says it is unlikely for BTC to go through a price collapse.
“Please also point out the ‘pullbacks/crashes/dumps’ many have freaked about over the last eight months.”
Although TechDev is optimistic about the prospect of another parabolic run for Bitcoin, fellow crypto analyst DonAlt does not share the same sentiment.
The analyst who nailed the 2022 Bitcoin bottom warns that support at $60,000 looks vulnerable after getting tested multiple 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).”
At time of writing, Bitcoin is worth $63,524.