One of the most prominent crypto strategists in the industry has predicted that Bitcoin (BTC) will see a significant price increase soon because it is sending out a positive signal.
The relative strength index (RSI) indicator for Bitcoin’s weekly chart has entered “overbought” zone, the pseudonymous analyst Cheds informs his 314,800 followers on the social networking site X.
Traders use the RSI, a momentum indicator, to determine if a trend is continuing or changing. According to Cheds, Bitcoin shot up and recorded gains of over 5x in October 2020 after showing a similar indication. When this occurred before, costs ranged from $12,000 to $64,000. It’s interesting to see, despite the fact that the pricing context is different.
An overbought asset is one that is trading for more than its true worth, leading many investors to anticipate a price drop in the near future. Cheds, on the other hand, claims that the inverse is true with Bitcoin.
Overbought is bullish. Being bullish is the only path to overbought territory, and trends have a tendency of keeping going. For what it’s worth, most of BTC’s largest price rises in the past have occurred under “overbought” conditions. The current price of one bitcoin is $37,002.
The smart contract platform Ethereum (ETH) is one example. Cheds says that bulls will probably start to show their strength once the second-largest cryptocurrency by market value breaks through a key price level. A break and hold of the $2,150 range might provide a long thesis for ETH speculators.
Also Read: Singaporean company DTCPAY starts a retail cryptocurrency payment service
