A widely followed analyst and trader believes Bitcoin (BTC) is set to go even higher after recently hitting a new all-time high.
The analyst, pseudonymously known as Credible Crypto, tells his 467,200 followers on the social media platform X that Bitcoin is now in the final phase of a bullish cycle.
Credible Crypto, who regularly applies the Elliott Wave theory in his technical analysis, says Bitcoin is in the final wave of the main bullish trend. The Elliott Wave theory states that the main trend of the price of an asset moves in a five-wave pattern while a correction occurs in a three-wave pattern.
“Regardless of how this month closes – the fact that our monthly Relative Strength Index (RSI) is pushing into overbought territory once again means that things are about to get silly.
The final fifth [wave] is well underway and we are approaching the point at which we will soon begin to go parabolic and witness a blow-off top, the likes of which we haven’t seen since 2017.
This will be the MOST AGGRESSIVE EXPANSION we have seen on Bitcoin SINCE INCEPTION.”
The RSI is a momentum oscillator calibrated from zero to 100, with a reading of above 70 indicating overbought conditions and a reading of under 30 signaling oversold conditions.
According to the pseudonymous analyst, Bitcoin recorded massive increases in price when the RSI reading on the monthly time frame reached overbought levels.
“The last two times we did this, the monthly candles that broke us into overbought territories were $22,200 and $33,000 large, respectively.
Will this third monthly candle be even bigger? Currently at $18,000 with around 10 days until the monthly close.”
Source: Credible Crypto/X
Bitcoin is trading at $111,296 at time of writing.
Generated Image: Midjourney
