A widely followed analyst believes that Bitcoin (BTC) is gearing up for a parabolic rise despite recent price declines.
Pseudonymous crypto strategist TechDev tells his 447,600 followers on social media platform
The analyst predicts that BTC will rise by more than 120%, similar to what happened at the end of 2020 when Bitcoin rose from around $13,000 to over $29,000 in just two months.
“Bitcoin’s two-month candle is right at the candle high position, shortly after maximum compression.
While the RSI (relative strength index) is about to break 70.
These were the conditions that led to the last three parabolic accelerations.
I suspect this candle for the next two months will be as big as November 2020.”
Looking at the trader’s chart, he seems to indicate that Bitcoin had parabolic peaks in 2013, 2016 and 2020, when the momentum indicator, the relative strength index (RSI), rose above the bullish 70 level.
He also says that Bitcoin’s volatility indicator – the Bollinger Bands Wide (BBW) – bottomed out during the same three instances, indicating that BTC was preparing for a major price explosion.
Because Bitcoin replicates the exact conditions, TechDev say It is unlikely that BTC will experience a price drop.
“Please also point out the ‘pullbacks/crashes/dumps’ that many have been concerned about over the past eight months.”
While TechDev is optimistic about the prospect of another parabolic run for Bitcoin, fellow crypto analyst DonAlt does not share the same sentiment.
The analyst who has hit the 2022 Bitcoin bottom warns that support at $60,000 looks vulnerable after being tested multiple times.
“Back to the same old level. The more often it is tested, the greater the chance that it will break.
I think even bulls would want to get a washout underneath at this point.
Complacency until proven otherwise (such as until $68,000 is recovered or coverage is lost and then recovered).”
At the time of writing, Bitcoin is worth $63,524.
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