Bitcoin (BTC) has the potential to reach $180,000 as a new bull signal indicates historical gains. Caleb Franzen, the founder of Cubic Analytics, suggested that BTC price returns could increase by 260% from current levels in this cycle. Franzen analyzed the Williams%R Oscillator on three-year timeframes and discovered a rare bull signal, which has only occurred four times in history. This signal indicates that Bitcoin just completed its highest monthly close since October 2021. The Williams%R Oscillator is used to measure the strength of BTC price trends. Franzen emphasized that overbought signals are extremely bullish and should be seen as momentum signals rather than signals to fade. Similar signals appeared in 2013, 2016, and 2020, which marked the early stages of a Bitcoin bull market. Although returns have decreased in each cycle, even matching the 260% return in 2020 would result in a BTC price of $180,000. However, Franzen cautioned that these unusual events do not guarantee future performance. The Relative Strength Index (RSI) is another indicator that tends to reach “overbought” levels during bull markets. On daily timeframes, the RSI is firmly overbought, while monthly timeframes show the RSI entering the overbought zone. It is important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.
Bitcoin metric mirrors previous surge that resulted in BTC price gains of up to 1,900%