Bitcoin (BTC) is heading for what is arguably a mathematically “programmed” all-time high of $ 200,000 or more, based on the latest data.
In a series of tweets on October 4, popular Twitter commentator TechDev highlighted the well-known bullish behavior in Bitcoin’s Relative Strength Index (RSI).
2021 Bitcoin RSI just follows the pattern
While it still remains below targets such as stock-to-flow, BTC / USD does not fall short on bullish price predictions for both this year and the future.
The RSI, a classic indicator used to identify overbought and oversold markets at a particular price, joins them, suggesting that the second phase of the 2021 bull run is just beginning.
Just as Bitcoin’s price action has developed in four-year cycles, RSI has also shown behavioral patterns over the years.
“Each cycle has had 2 peaks. 2021 is now moving towards its second,” explained TechDev.
In each four-year cycle, the RSI peaks at a level slightly lower than the last; this also helps to identify an upper cycle a little early. However, where BTC / USD will be at that point is a much less exact science.
“It’s interesting to look at the resistance to the 8-year downtrend,” added TechDev.
“We hit it and it’s probably for the best. Or at least a place to seriously reassess the risk.”
Annotated chart of Bitcoin RSI versus BTC / USD. Source: TechDev / Twitter
Other figures suggest that the maximum price of BTC this time could be $ 200,000 or more.
Related: BTC’s Bull Run Has ‘At Least 6 Months To Go’: 5 Things To Watch Out For In Bitcoin This Week
“200-300K Bitcoin seems almost too programmed,” added TechDev alongside a different chart showing fibonacci levels.
These also depend on the four-year halving cycle, with each peak an order of magnitude higher than the last. By 2021, this means that $ 20,000 from 2017 should go from $ 200,000 to $ 300,000.
This perfectly matches the stock-to-flow cross-asset (S2FX) model, which calls for an average price of $ 288,000 during the current halving cycle ending in 2024.
Nonetheless, creator PlanB has said that local highs during that time could easily double that average, putting Bitcoin at more than half a million dollars.