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Henrik Zeberg, a macroeconomist known for his expertise in business cycles, has pointed to an upcoming rally of at least 60% for the price of bitcoin in his latest technical analysis. The experienced analyst has x/YROibTq6/” target=”_blank”>identified a pattern in three critical technical indicators that have historically signaled major bullish price moves when all are 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 sits above the 50 mark, which often indicates increasing bullish momentum. More importantly, the RSI has broken out of a descending trend line that previously limited momentum, a change that typically precedes sharp price increases.
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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 from bearish to bullish market conditions. Zeberg's emphasis on this crossover is consistent with its recognized predictive value in signaling the beginning of a bullish phase.
The third indicator, the Relative Vigor Index (RVGI), is less known but no less critical. This indicator is also experiencing a bullish crossover, marked by the green line surpassing the red line. The RVGI measures the vigor of price movements and its crossover is indicative of a strong bullish undertone.
The chart provided by Zeberg is annotated with several instances where these conditions were met in the past, each followed by significant price rallies. These include surges 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 only minor increases but important bull runs. . The historical context adds weight to the current setup, suggesting that a similar outcome may be on the horizon.
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Zeberg has noted that every time bitcoin has shown this setup of technical indicators, it has led to rallies of no less than 60%.” Every time we have seen confirmation of the following three indicators, btc has rallied and at least 60%,” Zeberg writes.
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 NewsBTC reported, Zeberg predicts that a US recession is inevitable, but will be preceded by a significant rally in financial markets, including a major rally in bitcoin, which could reach between $115,000 and $120,000 in a “bangout” scenario. superior”. .
At the time of this publication, btc was trading at $67,956.
Featured image created with DALL.E, chart from TradingView.com
