Bitcoin is potentially poised for a meteoric rise, with projections suggesting it could reach $180,000, spurred by a bullish signal reminiscent of historical gains.
Caleb Franzen, founder of Cubic Analytics, disclosed on March 1 that BTC price returns may surge by 260% from current levels during this cycle, in a post on X.
Franzen highlighted the significance of an ultra-rare Williams%R Oscillator signal, which has appeared only four times in history.
This indicator, analyzed on three-year timeframes, recently surpassed the overbought level, signifying a bullish trend for Bitcoin.
“The 36-month Williams%R Oscillator just closed above the overbought level for the 4th time in history,” Franzen remarked, emphasizing the bullish sentiment.
This oscillator, instrumental in predicting Bitcoin’s recovery from the 2022 bear market lows, is now indicating a potential surge into “overbought” territory above -20, a phenomenon observed only thrice before in 2013, 2016, and 2020.
Franzen cautioned against dismissing overbought signals, emphasizing their bullish momentum implications.
READ MORE: Bitcoin Surges to Highest Point in Over Two Years on Institutional Endorsement and ETF Optimism
Despite diminishing returns in each cycle, with 2020 yielding 260%, matching this performance would propel Bitcoin to $180,000.
However, Franzen stressed the unpredictability of market behavior despite historical trends, urging caution in interpreting these signals as guarantees of future performance.
Another bullish indicator, the Relative Strength Index (RSI), has also surged into overbought territory on daily timeframes, reaching levels above 80/100 on Feb. 28.
This follows a reset in late December, preceding Bitcoin’s upward momentum fueled by the launch of spot Bitcoin exchange-traded funds (ETFs) in the United States.
Monthly RSI trends further reinforce the optimism, with the indicator just entering the overbought zone, suggesting potential further upside for Bitcoin.
While indicators point to a bullish trajectory for Bitcoin, Franzen’s cautionary stance underscores the need for prudent interpretation and consideration of market dynamics beyond historical patterns.
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