Bitcoin Metric Repeats Bullish Movement That Showed Up To 1,900% BTC Price Gains
Bitcoin (BTC) now has a shot at hitting $180,000 if a new bullish signal repeats its historic gains.
In a post on X, Cubic Analytics founder Caleb Franzen suggested that BTC's price rebound could reach 260% from current levels this cycle.
Analyst's eyes are extremely rare Williams %R Oscillator signal
Bitcoin is up more than 43% in February alone, but the long-term BTC price gauge is calling for much higher levels.
Analyzing the Williams %R Oscillator on three-year timeframes, Franzen showed a rare bull signal that lit up for only the fourth time.
“Bitcoin just completed its highest monthly close since October 21st, but it looks even better and more flashy… The 36-month Williams %R Oscillator has closed above the overbought level for the 4th time in history,” he summarized.
The Williams %R Oscillator is used to measure the strength of BTC price trends. As reported by Cointelegraph, Franzen indicated that the tool was important in charting the start of Bitcoin's recovery from the bear market lows of 2022.
While there were 12-month timeframes in play then, now, a very rare phenomenon is back – the 36-month Williams %R Oscillator is heading above -20 into “overbought” territory.
“I always say it and I keep repeating it: overbought signals are incredibly aggressive and should be viewed as signs of momentum, not signs of extinction,” Franzen continued.
Previous signals were seen in 2013, 2016 and 2020 – all years marking the first entry of a Bitcoin bull market.
As the returns decrease each cycle – from 1,900% in 2013 to 260% in 2020 – even matching the latter would result in a value of 180,000 BTC.
Franzen, however, acknowledges that even these rare occurrences should not be taken as a guarantee of future performance.
“The same analysis I shared for the 12M and 24M Williams %R signals worked perfectly; however, this study does not guarantee anything. When investor behavior is statistically similar, it simply tells us how market participants have behaved in the past,” he explained.
“This research is unequivocally brutal, but we should look at it as improving the chances of bullying rather than simply being bullied from a binary perspective.”
RSI extends the bullish trend into monthly timeframes
Another indicator that tends to bring out the bearish parts of a bull market at an “overbought” level is the Relative Strength Index (RSI).
RELATED: Bitcoin Just Prints $20k Monthly Candlestick – Biggest Ever in USD
On daily time frames, this was overbought, briefly crossing 80/100 on February 28, data from Cointelegraph Markets Pro and TradingView confirms.
In late December, the daily RSI performed a sort of reset, which was Bitcoin's first push into spot Bitcoin exchange-traded funds, or ETFs, before the launch in the United States.
Moreover, the monthly time frames look more optimistic, with the RSI just entering the overbought zone.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
