Cryptocurrency analyst and trader Kevin Svenson is saying one indicator is signaling major momentum for Bitcoin (BTC).
Svenson tells his 83,500 YouTube subscribers that the relative strength index (RSI), a momentum oscillator used to determine overbought or oversold conditions, is flashing a signal on the daily time frame that has previously preceded massive rallies such as in October of 2023, February of 2024 and November of 2024.
“Bitcoin’s daily RSI is attempting to bounce off of the overbought zone. Which, in my book, when you break out and you enter overbought, that is oftentimes can be a very bullish signal. Contrary to what most people would assume, they think that overbought is always bad.”
The RSI indicator is calibrated from zero to 100, with readings of zero to 30 indicating oversold conditions and readings of above 70 indicating overbought conditions.
According to Svenson, Bitcoin could go up by nearly 20% from the current level in a few months to hit the cycle peak.
“Bitcoin right now breaking above this resistance ($112,000) into the overbought zone. It usually signals major momentum…
I’m aiming for something around $142,000 for this run. You know, that’s a multi-month target. I’m not saying it’s going to happen necessarily in a month. I think that’ll happen anywhere from, you know, a couple months to around October of this year…
The Bitcoin halving cycle profit shows that 80 weeks after the halving is the usual start of the bear market, which in this cycle is going to be landing us around end of October.”
Bitcoin is trading at $118,994 at time of writing.
Generated Image: Midjourney