Bitcoin Shows Bullish Reading
A well-known crypto strategist believes that Bitcoin (BTC) is displaying a bullish signal that has historically preceded a significant price surge. The pseudonymous analyst Cheds, with a substantial following on X, notes that Bitcoin’s relative strength index (RSI) indicator on the weekly chart has entered “overbought” territory. The RSI is a momentum indicator used by traders to identify trend continuation or reversal.
Cheds points out that when Bitcoin previously exhibited the same overbought signal in October 2020, the cryptocurrency skyrocketed and saw gains of over 5x. Despite conventional wisdom that an overbought asset indicates a correction, Cheds argues that the opposite applies to Bitcoin. He emphasizes that historically, most of BTC’s biggest price gains have occurred while it was overbought.
Ethereum Also Expected to Rise
Cheds also predicts potential bullish movements for Ethereum (ETH). According to him, once Ethereum moves above a key price level, bulls are likely to assert themselves. He suggests that ETH observers can use a break and hold of the $2,150 area as a long thesis.
Hot Take: Crypto Analyst’s Bullish Outlook on BTC and ETH
A closely followed crypto strategist points to an overbought signal on the weekly RSI chart for Bitcoin as a precursor to a significant surge in price. While some may interpret this signal as a potential correction, the analyst argues that it historically leads to strong gains for Bitcoin. Additionally, the strategist sees potential for Ethereum to rally once it surpasses a key price level.
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