A broadly adopted crypto analyst says that one traditional indicator might dictate Bitcoin’s (BTC) subsequent worth transfer.
In a brand new video replace, crypto strategist Benjamin Cowen tells his 803,000 YouTube subscribers that the crypto king’s relative power index (RSI) – a momentum oscillator used to research whether or not an asset is overbought or oversold – is giving “uncomfortable” vibes.
Taking a look at two-week candles, Cowen notes that each single one among Bitcoin’s worth tops coincided with the RSI hitting the identical downward resistance degree – one thing that has already occurred in March.
“We are able to additionally have a look at this on a two-week timeframe as a result of I really suppose that the RSI is slightly bit extra helpful the longer the time-frame that you simply’re utilizing… Whenever you first have a look at the two-week RSI there, it’s a little bit of an uncomfortable feeling…
You’ll be able to see that the two-week RSI has tagged this higher pattern line – there’s this downward pattern line that’s tagged close to main tops for Bitcoin. We tagged it in 2011 and in 2013, after which once more later in 2013. We tagged it [also] right here in 2017.
Then we additionally tagged it in January of 2021, however then we all know that Bitcoin went barely increased even after that, however once more there’s no denying that if you have a look at this, it in all probability makes you’re feeling considerably uncomfortable. That’s why I say it’s a good suggestion to stay to the chance metrics.”
Supply: Benjamin Cowen/YouTube
Nonetheless, trying on the month-to-month chart, Cowen notes the potential of BTC “pulling a 2019” the place the RSI initially fails to breach the 66 degree earlier than efficiently reaching the downward resistance degree that has beforehand known as tops.
“I ponder, is it going to only go up right here by the top of the 12 months after which type of the left translated peak involves fruition? Or is it going to drag a 2019 on us, and simply form of fade for slightly bit longer than individuals suppose it’s going to. As a result of in 2019 you possibly can see that it had a very nice run however then the month-to-month RSI light from June of 2019 into March. So developing right here to the excessive, it dropped for about 9 months, so if it had been to do this right here, about 9 months would really put it in December of 2024.”
Supply: Benjamin Cowen/YouTube
Bitcoin’s month-to-month RSI is presently sitting at 60.99, in keeping with TradingView knowledge.
BTC is buying and selling for $57,933 at time of writing, a 1.3% enhance over the last 24 hours.
Generated Picture: Midjourney
