- BTC’s surge from $82K to $104K highlights strong fundamentals and ongoing bullish momentum.
- Plan B predicts Bitcoin’s RSI will soar past 80, potentially pushing prices to $400K.
- Diverging moving averages signal a developing bull market, pushing Bitcoin to new highs.
Since the end of March, Bitcoin has grown significantly, increasing its price from $82,000 to $104,000 as of press time. The sudden and dramatic recovery has generated new enthusiasm among analysts. Bitcoin’s strong fundamentals and limited supply reinforce forecasts of ongoing upward movement. Analyst Plan B claims that Bitcoin’s current value is much lower than what it might be, especially in comparison to gold.
At present, Bitcoin’s RSI is 69, just under the 70 level, which is usually associated with overbought territory. Plan B expects Bitcoin to have at least four months with an RSI level above 80, mirroring the 2021, 2017, and 2013 bull market phases. When its RSI mark has passed 80, Bitcoin’s monthly returns have often exceeded 40%.
Bitcoin’s Bullish Momentum
Should the pattern remain consistent, Bitcoin may see four months of uninterrupted upward movement, increasing its price from $104,000 to $400,000. This kind of price rise has occurred in previous bull periods. In earlier bull markets in 2021 and 2017, Bitcoin appreciated rapidly when RSI readings were elevated. Analysts point out that Bitcoin’s current rise resembles similar price rallies in the past.
The 200-week moving average indicates a bullish stance as it pulls farther away from the geometric average. Historically, such a divergence has signaled the development of a bull market, suggesting that prices will surge. The distance between these moving averages strongly indicates that the market is entering a long-lasting bull period, which will push Bitcoin upward over the long run.
Plan B’s data shows that Bitcoin’s current market price is trading above the realized price, suggesting that most holders are in profit. This positive sentiment supports a bullish market outlook. As long as the price stays above the realized level, the likelihood of a bear market remains low.
Related: US-China Trade Peace: “Perfect Storm” for Bitcoin Rally
Bitcoin’s price is moving towards surpassing its previous all-time highs. If RSI surpasses 80 and stays elevated, similar to prior bull cycles, Bitcoin may rise and reach $400,000 or even higher. The cryptocurrency’s prospects improve as the market cycle continues to unfold.
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