Henrik Zeberg, a macroeconomist known for his knowledge of business cycles, in his latest technical analysis pointed to an upcoming price augment of at least 60% for Bitcoin. An experienced analyst does identified a pattern involving three critical technical indicators that have historically signaled gigantic upward price movements when they all line up.

Bitcoin price set for next Bull Run

Zeberg highlights the Relative Strength Index (RSI), which is traditionally used to assess whether an asset is overbought or oversold. Currently, the RSI is above the 50 level, which often indicates increasing momentum. More importantly, the RSI indicator broke the downward trendline that had previously confined momentum, which usually precedes significant price increases.

Along with the RSI, the Moving Average Convergence Divergence (MACD) is showing a bullish crossover. This event occurs when the faster moving MACD line, shown in blue, crosses the slower signal line, shown in red. This crossover is a established signal used by traders to confirm a potential reversal from bearish market conditions. Zeberg’s emphasis on this junction is consistent with its recognized predictive value in signaling the onset of the growth phase.

The third metric, the Relative Vigor Index (RVGI), is less well-known but no less critical. This indicator is also experiencing a bullish crossover, marked by the green line overtaking the red one. RVGI measures the strength of price movements, and its intersection indicates a mighty bullish overtone.

The chart provided by Zeberg shows several instances where these conditions have been met in the past, each following significant price increases. These include increases of +318% in 2019, +824% in 2020, +70% at the end of 2021, +64% in January 2023 and +176% in the second half of 2023, which indicates not only miniature increases, but also a significant bull run. The historical context adds weight to the current situation, suggesting that a similar outcome may be on the horizon.

Zeberg noted that every time Bitcoin showed this configuration of technical indicators, it led to increases of no less than 60%. Every time we saw confirmation of the following three indicators, BTC increased by at least 60%,” writes Zeberg.

His confidence in this pattern is obvious when he describes the potential for what he calls a “blow-off top,” a term that suggests intense and rapid price growth. As reported by NewsBTC, Zeberg predicts that a recession in the US is inevitable, but it will be preceded by a significant augment in the financial markets, including a gigantic augment in the Bitcoin price, which in the “blow-off top” scenario may range from $115,000 to $120,000.

At the time of publication, the price of BTC was $67,956.

Featured image created with DALL.E, chart from TradingView.com