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Henrik Zeberg, a macroeconomist known for his expertise in business cycles, has identified an upcoming rally of at least 60% for the Bitcoin price in his latest technical analysis. The seasoned analyst does identified a pattern between three critical technical indicators that have historically signaled large upward price movements while all being aligned.
Bitcoin price set for the next bull run
Zeberg highlights the Relative Strength Index (RSI), which is traditionally used to assess whether an asset is overbought or oversold. Currently, the RSI is above 50, which often indicates growing bullish momentum. More importantly, the RSI has broken above a declining trendline that previously limited momentum, a shift that typically precedes robust price gains.
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In addition to the RSI, the Moving Average Convergence Divergence (MACD) is showing a bullish crossover. This event occurs when the faster moving MACD line, shown in blue, crosses the slower signal line, shown in red. This crossover is a traditional signal used by traders to confirm a possible reversal from bearish to bullish market conditions. Zeberg’s emphasis on this crossover is consistent with its recognized predictive value in signaling the onset of a bullish phase.
The third indicator, the Relative Vigor Index (RVGI), is less known but no less critical. This indicator is also experiencing a bullish crossover, marked by the green line overtaking the red line. The RVGI measures the strength of price movements and its crossover is indicative of a strong bullish undertone.
The chart provided by Zeberg is annotated with several instances where these conditions were met in the past, each followed by significant price increases. These include increases of +318% in 2019, +824% in 2020, +70% at the end of 2021, +64% in January 2023 and +176% in the second half of 2023, which not only indicate small increases, but also substantial bull runs. . The historical context adds weight to the current situation, suggesting that a similar outcome is in the offing.
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Zeberg has pointed out that every time Bitcoin has shown this configuration of technical indicators, it has led to rallies of no less than 60%.” Every time we have seen confirmation of the three following indicators, BTC has risen, by at least 60%,” Zeberg wrote.
His confidence in this pattern is evident when he describes the potential of what he calls a ‘Blow-Off Top’, a term that suggests an intense and rapid rise in prices. As reported by NewsBTC, Zeberg predicts that a recession in the US is inevitable, but that it will be preceded by a significant rise in the financial markets, including a major rally in Bitcoin, which may reach between $115,000 and $120,000 in a “Blow -Off Top” scenario. .
At the time of writing, BTC was trading at $67,956.
Featured image created with DALL.E, chart from TradingView.com