An anonymous trader and analyst using the name @TechDev_52 on Twitter claimed that only one indicator can safely predict where the price peaks and bottoms of Bitcoin (BTC) in the macro cycle will be.
“two simple lines” working for 10 years
Today, the analyst shared his thoughts on the role of the Relative Strength Index (RSI) in predicting Bitcoin (BTC) price peaks and dips, and highlighted some interesting points.
As it is known, the Relative Strength Index is an indicator that is frequently used in financial technical analysis. The RSI, which is essentially a momentum indicator, is used to detect overbought or oversold signals.
However, on the analyst’s chart, the price dynamics of the leading cryptocurrency are displayed on a logarithmic scale using a 14-day time frame. Two descending lines are added to the RSI chart; one in the “overbought zone” and one in the “oversold zone”.
Two simple lines are all you’ve needed to call every market top and bottom in #Bitcoin‘s 10+ years of history.
I’ll do everything I can to help us nail the next pair close as we can.
And we’ve got a hell of a community to help. pic.twitter.com/xTzCJ1rRiZ
— TechDev (@TechDev_52) November 6, 2021
According to the analyst, Bitcoin (BTC) price peaks when the RSI line touches the upper boundary of the “channel”. Otherwise, touching the bottom limit means the end of the loop. At the same time, on this chart, Bitcoin (BTC) price does not peak after bottom: that is, we saw two consecutive highs in 2011, 2012 and 2014. Therefore, according to this model, Bitcoin (BTC) price will peak at the $140,000-160,000 levels early in the first quarter of 2022.
Finally, according to the press time, the RSI line is below 70 and is approaching the “moderately overbought” zone.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.