Henrik Zeberg, a macroeconomist known for his expertise in economic cycles, identified a rally of at least 60% for the price of Bitcoin in his latest technical analysis. The experienced analyst identified a pattern in three critical technical indicators that have historically signaled large upward price movements when all aligned.
Bitcoin Price Set for Next Bull Run
Zeberg highlights the Relative Strength Index (RSI), which is traditionally used to assess whether an asset is overbought or oversold. Currently, the RSI is positioned above the 50 mark, which often indicates increasing bullish momentum. Most importantly, the RSI broke above a descending trendline that had previously limited momentum, a change that typically precedes robust price increases.
Related Reading
Along with the RSI, the Moving Average Convergence Divergence (MACD) is showing a bullish crossover. This event occurs when the faster moving MACD line, shown in blue, crosses above the slower signal line, shown in red. This crossover is a traditional signal used by traders to confirm a possible reversal of market conditions from bearish to bullish. Zeberg’s emphasis on this crossover is consistent with its recognized predictive value in signaling the start of a bull phase.
The third indicator, the Relative Vigor Index (RVGI), is less well-known but no less critical. This indicator is also experiencing a bullish crossover, marked by the green line crossing the red line. The RVGI measures the strength of price movements and its crossing is indicative of a strong bullish tone.
The chart provided by Zeberg presents several cases where these conditions have been met in the past, each followed by significant price increases. These include increases of +318% in 2019, +824% in 2020, +70% at the end of 2021, +64% in January 2023 and +176% in the second half of 2023, indicating not just small but substantial increases. bull runs. The historical context adds weight to the current setup, suggesting that a similar outcome may be on the horizon.
Related Reading
Zeberg highlighted that every time Bitcoin has shown this technical indicator setup, it has led to rallies of at least 60%.” Each time we saw confirmation from the following three indicators, BTC rose at least 60%,” writes Zeberg.
His confidence in this pattern is evident when he describes the potential for what he calls a “Blow-Off Top”, a term that suggests an intense and rapid increase in price. As reported by NewsBTC, Zeberg predicts that a Recession in the USA is inevitable, but will be preceded by a significant rise in financial markets, which includes a major rally in Bitcoin, potentially reaching between $115,000 and $120,000 in a “Blow-Off Top” scenario.
At press time, BTC traded at $67,956.
Featured image created with DALL.E, chart from TradingView.com