3 - 4 minute read
Bitcoin (BTC) could be gearing up for a steep rally that mimics the 2015 bull market, according to cryptocurrency strategist TechDev. The pseudonymous analyst shared two charts showing how BTC has been following the 2015 cycle over the past 18 months. TechDev believes that multiple technical indicators suggest that Bitcoin is in the early stages of a parabolic rally, following a 1.5-year correction.
Looking at TechDev’s charts, it appears that BTC has taken out a diagonal resistance that kept Bitcoin bearish in 2022 and retested it as support, which is strikingly similar to the leading digital asset’s price action in 2014 and early 2015.
The analyst’s charts also show similarities in the movements of two technical indicators: the relative strength index and the moving average convergence divergence. According to the charts, Bitcoin’s weekly RSI has recently broken out of the bullish 60 zones after flashing a bullish divergence, reminiscent of its movement about eight years ago. Meanwhile, the MACD is flashing a bullish cross on BTC’s weekly chart, which is another signal witnessed in the early stages of the 2015 bull market.
TechDev is not the only analyst who believes that BTC could print exponential gains in the coming months. Pseudonymous analyst Credible thinks that BTC could hit $130,000 before the end of the year.
Given the bullish tone of this news, traders may want to consider increasing their investments in Bitcoin. While there is no guarantee that prices will rise as predicted, the charts suggest that there is a good chance that Bitcoin could mimic the 2015 bull market. As such, traders should keep a close eye on the relative strength index and the moving average convergence divergence in the coming months. These indicators could signal when it is time to buy or sell Bitcoin.
The Bottom Line
Bitcoin could be setting the stage for a steep rally in the coming months. Technical indicators suggest that BTC is following the 2015 bull market, which saw BTC rally from less than $200 to $20,000 in about two years. Traders should keep a close eye on the relative strength index and the moving average convergence divergence to determine when to buy or sell BTC.