March 27, 2024
Bitcoin's at $61,534, Metric Repeats, Signaling Upto 1,900% Gain
Bitcoin price today

Bitcoin’s at $61,534, Metric Repeats, Signaling Upto 1,900% Gain

Friday, March 1, 2024: The price of Bitcoin stands at $61,534. Bitcoin undergoes a decline, with its ticker reflecting a dip to $61,189; however, there are indications of a potential upswing to $180,000 if a historical bullish signal repeats.

Caleb Franzen, founder of Cubic Analytics, posted on X on March 1, proposing that BTC price returns could see a 260% increase from current levels during this cycle.

Although Bitcoin registered over a 43% gain in February, a long-term BTC price metric anticipates even higher levels. Franzen examines the Williams%R Oscillator over three-year periods, uncovering a seldom-seen bullish signal occurring just four times in history.

Franzen explains, “Bitcoin just completed the highest monthly close since Oct. ’21, but it gets even better & more bullish… The 36-month Williams%R Oscillator just closed above the overbought level for the 4th time in history.”

The Williams%R Oscillator is instrumental in assessing BTC price trends. Franzen notes its significance in identifying the commencement of Bitcoin’s recovery from the 2022 bear market lows. In a unique occurrence, the 36-month Williams%R Oscillator is entering “overbought” territory above -20. Franzen emphasizes the bullish nature of overbought signals, citing prior instances in 2013, 2016, and 2020—each coinciding with the early stages of a Bitcoin bull market.

Despite diminishing returns in each cycle, from 1,900% in 2013 to 260% in 2020, replicating the latter would result in a $180,000 BTC price. Franzen cautions against treating these uncommon events as a guarantee of future performance, stating, “This study is unequivocally bullish, but we should view it simply as improving bullish probabilities rather than being outright bullish from a binary perspective.”

Another noteworthy indicator is the Relative Strength Index (RSI), known to reach “overbought” levels during the steepest parts of bull markets. On daily timeframes, RSI is firmly overbought, briefly surpassing 80/100 on Feb. 28, as confirmed by data from trusted sources.

In late December, a form of reset in daily RSI preceded Bitcoin’s initial surge coinciding with the launch of spot Bitcoin exchange-traded funds (ETFs) in the United States. Monthly timeframes present an even more optimistic picture, with the RSI just entering the overbought zone.

The cryptocurrency market’s dynamic nature prompts cautious optimism, acknowledging historical patterns without guaranteeing future outcomes. The potential for a substantial BTC surge remains, driven by rare indicators and historical parallels, but market participants are advised to interpret these signals as enhancements to bullish probabilities rather than absolute assurances. Bitcoin’s resilience, as observed through various metrics, fuels speculation about its trajectory, reinforcing the importance of monitoring indicators for potential market shifts.

Image by Eivind Pedersen from Pixabay

Related posts

Bitcoin’s at $69,749, Soars Over $69K on Wall Street Opening

Anna Garcia

Bitcoin Inches Closer to All-Time High, Surpassing $68,000

Cheryl  Lee

Bitcoin Hits $43,198.30 Amid Grayscale ETF Sell-Off

Cheryl  Lee

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More