According to the latest data, Bitcoin (BTC) is on track to what is undoubtedly the mathematically “programmed” high of $200,000 or more.

In a series of tweets on October 4, popular Twitter commentator TechDev highlighted the notorious bullish behavior of the Bitcoin Relative Strength Index (RSI).

Bitcoin 2021 RSI just follows the pattern
While BTC/USD remains below targets like the Stock-to-Flow pattern, there is no shortage of optimistic price predictions for this year and beyond.

They are joined by the Relative Strength Index (RSI), a classic indicator used to identify overbought and oversold markets at a particular price, indicating that the second phase of the beef rally in 2021 has just begun.

Just as Bitcoin price dynamics have changed over four-year cycles, the RSI has also shown patterns in behavior over the years.

“Each cycle had two peaks. 2021 is approaching its second year,” TechDev explained.

In each four-year cycle, the RSI peaks at a level slightly lower than the previous one – this also helps to predict the peak of the cycle in advance. However, the whereabouts of BTC/USD at that time is a much less accurate science.

“It is interesting to note the eight-year downward resistance,” TechDev added.

“Then it became our focus. Or at least a place where you can seriously rethink the risks.”

Annotated chart of Bitcoin RSI vs. BTC/USD. Source: TechDev / Twitter
“Too programmed”?
Additional numbers suggest that the peak price of BTC could reach $200,000 or more this time around.

Related: BTC Bullish Run ‘At Least 6 Months Left’ – 5 Things to See in Bitcoin This Week

“200-300K #Bitcoin looks very programmed,” TechDev added with another chart showing Fibonacci levels.

It also adheres to a four-year cycle of halving, with each peak an order of magnitude higher than the previous one. For 2021, this means that the peak of $20,000 from 2017 should be somewhere between $200,000 and $300,000.

This fits well with the stock-flow cross-asset model, which requires an average price of $288,000 during the current halving cycle, which ends in 2024.

However, the creator of Stock-to-Flow PlanB said that local spikes during this time could easily be twice the average, putting Bitcoin in value at more than half a million dollars.

Source: CoinTelegraph

LEAVE A REPLY