Bitcoin reaches bull run similar to one with up to 1,900% price increase.

Bitcoin's New Bullish Indicator Signals for Only the Fourth Time Ever - Potential BTC Price Target of $180,000+ Identified

Bitcoin Price Could Soar to $180,000, Analyst Says

📈 Bitcoin (BTC) has the potential to reach $180,000, thanks to a new bull signal that is comparable to historical gains, according to Caleb Franzen, founder of Cubic Analytics. In his recent post on Twitter, Franzen emphasized that BTC price returns could surge by 260% from its current levels this cycle.

Analyst Identifies Rare Bull Signal

🚨 Franzen highlighted an ultra-rare Williams%R Oscillator signal that is signaling a potential surge in Bitcoin’s price. The Williams%R Oscillator, which is used to measure the strength of BTC price trends, has only flashed this bullish signal four times in history. In fact, this is the highest monthly close since October 2021, making it even more promising. Based on Franzen’s analysis, this signal was instrumental in pinpointing the start of Bitcoin’s recovery from the 2022 bear market lows.

🔮 The current occurrence is extraordinary, as the 36-month Williams%R Oscillator is venturing into “overbought” territory above -20. Franzen reiterated that overbought signals should be seen as momentum signals rather than signals to fade. Similar signals have previously appeared in 2013, 2016, and 2020, all of which marked the early stages of a Bitcoin bull market.

⏰ Although the returns may have decreased in each cycle, from 1,900% in 2013 to 260% in 2020, matching the latter would still drive the price of BTC to $180,000. However, Franzen cautioned that these events, while bullish, do not guarantee future performance. He emphasized that this study reveals how market participants behaved in the past when investor behavior was statistically similar.

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BTC/USD chart with 36-month Williams%R Oscillator. Source: Caleb Franzen/X

RSI Adds to Bullish Trend

📊 Another indicator that typically reaches “overbought” levels during the strongest phases of bull markets is the Relative Strength Index (RSI). On daily timeframes, the RSI is firmly in the overbought zone, briefly surpassing 80/100 on February 28.

🔁 In late December, the daily RSI experienced a reset, which preceded Bitcoin’s initial push higher upon the launch of spot Bitcoin exchange-traded funds (ETFs) in the United States. Furthermore, the monthly timeframes show an even more optimistic outlook, with the RSI just entering the overbought zone.

BTC/USD 1-week chart with RSI. Source: TradingView

BTC/USD 1-month chart with RSI. Source: TradingView

Q&A: Addressing Additional Topics

🤔 Q: What are the factors that may prevent Bitcoin from reaching $180,000?

🗣️ A: While the current signals suggest strong potential for Bitcoin’s price growth, it’s important to consider other factors that may influence the outcome. Market volatility, regulatory measures, and overall investor sentiment can all impact Bitcoin’s trajectory. Additionally, unforeseen events such as cybersecurity breaches or global economic crises may also affect the market.

🤔 Q: Are there any alternative cryptocurrencies that could experience similar price gains?

🗣️ A: Bitcoin tends to lead the market, and its performance often sets the tone for other cryptocurrencies. However, other established cryptocurrencies like Ethereum (ETH) and Binance Coin (BNB) have also shown significant growth and have the potential to experience price surges. It’s essential to conduct thorough research and analysis to identify promising investment opportunities.

Future Outlook and Investment Recommendations

🔮 Considering the bullish signals provided by the Williams%R Oscillator and the RSI, along with the historical performance of Bitcoin during previous cycles, the future outlook appears positive. However, it’s important to approach investment decisions with caution and consult with industry experts to make informed choices.

💼 As with any investment, diversification is key. Building a portfolio that includes not only Bitcoin but also other promising cryptocurrencies can help mitigate risk while maximizing potential returns. Staying updated on industry news and trends is crucial to identify opportunities and make well-informed investment decisions.

References

1. Caleb Franzen’s Twitter Post
2. Williams%R Oscillator: A Powerful Tool to Spot Market Reversals
3. Bitcoin’s Recovery from the 2022 Bear Market Lows
4. Bitcoin’s $20K Monthly Candle — Its Biggest Ever in USD
5. TradingView: Bitcoin/USD 1-Week Chart with RSI
6. TradingView: Bitcoin/USD 1-Month Chart with RSI

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