A crypto expert is questioning whether Bitcoin has already hit its peak for this bull run. Technical indicators are hinting at a possible slowdown, raising concerns about what’s next for Bitcoin’s price.
Bitcoin’s Indicators Fall Short
Historically, Bitcoin’s price has been accompanied by extremely high readings on technical indicators like the Relative Strength Index (RSI) during major market highs. This shows massive market excitement. But this time, even though Bitcoin hit new all-time highs, the RSI hasn’t reached those same extreme levels.
A Bearish Signal?
Crypto market technician Tony Severino analyzed Bitcoin’s performance and argues that lower highs on indicators like the RSI, while Bitcoin’s price makes higher highs, could actually be a bearish signal. It suggests the market’s strength is fading. He compared Bitcoin’s current bull run to past ones. In previous cycles, the monthly RSI went above 90, but not this time. This raises the question: does Bitcoin need to hit those extreme RSI levels to confirm a peak, or is something else at play?
The Danger of Relying on Past Performance
Severino warns against assuming Bitcoin must reach past extreme indicator levels before a price peak. Past patterns don’t always repeat exactly. Over-reliance on past indicator peaks could cause traders to miss crucial warning signs of a market top or underestimate the possibility of a bear market.
Historical Parallels in the S&P 500
He points to the S&P 500 in the 1950s and 60s. Similar RSI failures preceded a major market crash. While this doesn’t guarantee a similar outcome for Bitcoin, it suggests that extreme RSI levels aren’t necessarily required to signal a cycle top.
Has Bitcoin Already Peaked?
Severino believes Bitcoin has already hit its peak for this bull cycle. When asked if the peak was when Bitcoin briefly surpassed $109,000, he confirmed this, citing market data and the timing around Donald Trump’s inauguration day./p>
