A popular crypto analyst has said that Bitcoin $58,156The three indicators that evaluate the price action of the cryptocurrency suggest that it has not seen its highest level. The analyst shared a chart with his followers on the social media platform X, which includes Bitcoin’s liquidity cycle, the Relative Strength Index (RSI) and the Fisher Transform Indicator.
RSI and Fisher Transform Indicator
The RSI is a momentum oscillator used to determine whether an asset is overbought or oversold. RSI readings between 70 and 100 indicate that the asset is overbought, while values between 0 and 30 indicate that the asset is oversold. The analyst also uses Bitcoin’s Fisher Transform Indicator to identify trend reversal points.
China 10-Year Bonds and M2 Money Supply
The analyst’s chart compares the Bitcoin price with China’s 10-year bonds (CN10Y) and the US seasonally adjusted money supply measure M2SL. According to this data, it is suggested that the expansion of CN10Y against M2SL could trigger major increases in Bitcoin.
The analyst’s assessments show that both the RSI and the Fisher Transform Indicator are exhibiting similar patterns seen before the massive Bitcoin rally in 2017. These indicators suggest that Bitcoin’s current price action could be the start of a new uptrend.
Bitcoin is trading at $57,793 at the time of writing. The analyst’s charts and indicator analysis suggest that Bitcoin is in the early stages of a potential parabolic rally. Such analysis, while not essential to investors, can be considered an indicator of general market trends.
It is emphasized that investors should do their own research and consider the risks when making investment decisions regarding Bitcoin or other digital assets. It is stated that the indicators provided by the analyst may be a guide for investors but should not be considered as definitive investment advice.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
