The Signal That Increased the Bitcoin Price by 400 Percent Reoccurred

The popular crypto analyst explained that Bitcoin (BTC) has regained the bullish trend that previously preceded a major price increase. Analyst Cheds shared his thoughts about #BTC to his 314,800 followers on the social media platform X. He said Bitcoin's relative strength index (RSI) indicator on the weekly chart is currently in the "overbought" zone. RSI is a momentum indicator that traders use to detect trend continuation or reversal. Cheds emphasized that when Bitcoin gave the same signal in October 2020, Bitcoin increased rapidly and gained more than 5 times.

“#BTC is entering the weekly RSI strength zone (70+, also known as overbought). Overbought means bullish. The last time this happened the price rose from $12,000 to $64,000. Even though the price context is different, it is worth observing.”

Generally, an overbought asset indicates that it is trading well above its fair value. Thus, investors tend to think that a correction is coming. However, Cheds argues that the opposite is true for Bitcoin. Finally, at press time, Bitcoin is trading at $37,100.

“Overbought means bullish. The only way to be overbought is to be bullish. “Many of #BTC's historically largest price increases have occurred while its value was overbought.”

Crypto analyst Cheds also shared his thoughts on #Ethereum (ETH). Cheds said his bulls will likely attack once the second-largest cryptocurrency in the market breaks above its key price level. At the time of writing this article, Ethereum price is trading at $2,051.

“#ETH bulls could break and hold the $2,150 area as a long thesis.”
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