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Henrik Zeberg, a leading economist known for his expertise in business cycles, has pointed to an upcoming rally of at least 60% in the price of Bitcoin in his latest technical analysis. A seasoned analyst has identified a pattern in all three major indicators that have historically shown large upward price movements when all are aligned.
Bitcoin Price Is Set For The Next Bull Run
Zeberg highlights the Relative Strength Index (RSI), which is commonly used to assess whether a stock is overbought or oversold. Currently, the RSI is placed above the 50 mark, which usually indicates growing bullish momentum. More importantly, the RSI broke the descending line that previously held momentum, a reversal that usually precedes a strong price rally.
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Next to the RSI, the Moving Average Convergence Divergence (MACD) shows a bullish crossover. This event occurs when the fast moving MACD line, shown in blue, crosses above the slow moving signal line, shown in red. This crossover is a traditional signal used by traders to confirm a potential reversal from bearish to bullish market conditions. Zeberg’s emphasis on this crossover is consistent with the perceived predictive value of signaling the beginning of a bullish phase.
The third index, the Relative Vigor Index (RVGI), is less well known but no less important. This indicator also faces a bullish crossover, marked by a green line crossing the red line. RVGI measures the strength of price movement and its cross is an indicator of a strong bullish tone.
The chart provided by Zeberg is illustrated with several instances where these conditions were encountered in the past, each followed by circles of significant values. This includes an increase of +318% in 2019, +824% in 2020, +70% in late 2021, +64% in January 2023, and +176% in the second half of 2023, which shows little increase but the running of the great bull. . The historical context adds weight to the current setup, suggesting a similar outcome may be on the horizon.
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Zeberg pointed out that each time Bitcoin showed this set of technical indicators, it led to rallies of no less than 60%. “Each time we see confirmation of the next three indicators, BTC has strengthened again by at least 60%,” Zeberg wrote.
His reliance on this pattern is evident as he describes the power of what he calls a “Blow-Off Top,” a term that suggests a large and rapid rise in price. As reported by NewsBTC, Zeberg predicts that the recession in the US is inevitable, however it will be preceded by a major increase in financial markets, including a major rally in Bitcoin, which may reach between $115,000 and $120,000 in the case of ” Blow-Off Top”.
At press time, BTC traded at $67,956.
The featured image was created with DALL.E, a chart from TradingView.com
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