Bitcoin (BTC) now has a shot at hitting $180,000 if a brand new bull sign repeats historic good points.
In a submit on X on March 1, Caleb Franzen, founding father of Cubic Analytics, advised that BTC worth returns may hit 260% from present ranges this cycle.
Analyst eyes extremely uncommon WilliamspercentR Oscillator sign
Bitcoin has added greater than 43% in February alone, however a long-term BTC worth metric is already calling for a lot greater ranges.
Analyzing the WilliamspercentR Oscillator on three-year timeframes, Franzen revealed a uncommon bull sign flashing for less than the fourth time ever.
“Bitcoin simply accomplished the best month-to-month shut since Oct. ’21, but it surely will get even higher & extra bullish… The 36-month WilliamspercentR Oscillator simply closed above the overbought degree for the 4th time in historical past,” he summarized.
The WilliamspercentR Oscillator is used to gauge the power of BTC worth developments. As Cointelegraph reported, Franzen confirmed that the instrument was important in charting the beginning of Bitcoin’s restoration from the 2022 bear market lows.
Whereas it was 12-month timeframes in play then, now, an excellent rarer incidence is again — the 36-month WilliamspercentR Oscillator is headed into “overbought” territory above -20.
“I say it on a regular basis & I’ll proceed to repeat it: overbought indicators are extremely bullish and must be seen as momentum indicators, not indicators to fade,” Franzen continued.
Prior indicators appeared in 2013, 2016 and 2020 — all years marking the early innings of a Bitcoin bull market.
Whereas the returns have decreased every cycle — from 1,900% in 2013 to 260% in 2020 — even matching the latter would produce a $180,000 BTC worth.
Franzen nonetheless acknowledged that even these uncommon occasions shouldn’t be handled as a assure of future efficiency.
“The identical evaluation that I shared for the 12M and 24M WilliamspercentR indicators have labored completely; nevertheless, this research ensures nothing. It merely tells us how market individuals have behaved prior to now when investor conduct was related from a statistical perspective,” he defined.
“This research is unequivocally bullish, however we must always view it merely as bettering bullish possibilities quite than being outright bullish from a binary perspective.”
RSI extends bullish development to month-to-month timeframes
One other indicator that tends to spend the steepest elements of bull markets at “overbought” ranges is the Relative Energy Index (RSI).
Associated: Bitcoin simply printed a $20K month-to-month candle — Its largest ever in USD
On day by day timeframes, that is firmly overbought, briefly passing 80/100 on Feb. 28, information from Cointelegraph Markets Professional and TradingView confirms.
In late December, day by day RSI executed a type of reset, which preceded Bitcoin’s preliminary push greater into the launch of the spot Bitcoin exchange-traded funds, or ETFs, in america.
What’s extra, month-to-month timeframes look much more optimistic, with the RSI solely now getting into the overbought zone.
This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer includes danger, and readers ought to conduct their very own analysis when making a choice.
