Bitcoin Could Double (Again) With A Close Above This Key Level

Tony "The Bull" Severino

1 year ago

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Bitcoin price rose over $5,000 today due to a powerful surge of FOMO, driven following the news that the Elon Musk-led Tesla had added $1.5 billion in BTC to its company reserves.

The strength of today’s buying frenzy has pushed the daily Relative Strength Index back above a key level. A close above it could send the cryptocurrency’s price doubling. Here’s how.

Bitcoin Blasts Off As Tesla Buys $1.5 Billion In BTC

Bitcoin is in what could be its most important bull market ever. The cryptocurrency is no longer only held by early adopters, tech enthusiasts, evangelists, or traders, and is now the focus of hedge funds, institutions, and major publicly-traded corporations.

The trend of companies buying Bitcoin to bolster their staying power ahead of coming economic struggles began with the NASDAQ-listed software firm MicroStrategy. Since then, a domino effect has begun, with Jack Dorsey’s Square Inc. adding BTC to their treasury reserves, followed most recently by Tesla.

Tesla CEO Elon Musk had previously added Bitcoin and hashtag to his Twitter bio, but now has added to Tesla’s holdings to the tune of $1.5 billion in BTC.

The buy alone sustained price action from breaking deeply below $30,000, and news of it making rounds caused Bitcoin to soar by over $5,000 from low to high today.

But what’s more notable, is that the move will have pushed the daily Relative Strength Index back into bull territory if today’s candle can close at or above current levels.

The Relative Strength Index is back in "overbought" bull territory | BTCUSD on TradingView.com

Crypto Prices Could Double If RSI Stays In Bull Zone

The Relative Strength Index is designed to signal when an asset is overbought or oversold. A reading of 70 or 30 suggests an extreme point has been reach, and the chances of a reversal are increased.

In powerfully trending assets, however, they can remain overbought or oversold for a significant amount of time. In the example above, each daily close in overbought territory has resulted in at least another week of upside.

The Relative Strength Index could stay overbought until $90K per coin | Source: BTCUSD on TradingView.com

More dramatic than the amount of time assets can rise while staying overbought, in the above example, Bitcoin has risen as much as another 117% once the RSI makes a close above 70.

Bitcoin price already rallied $5,000 today alone. If this is just the start of the move and its sustained as the last breakout, the price per BTC could double once again in as little as about one month.

Featured image from Deposit Photos, Charts from TradingView.com

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.