A popular crypto trader thinks Bitcoin (BTC) is gearing up for a big breakout this month en route to fresh all-time highs.

The pseudonymous analyst known as TechDev says in a new analysis that BTC’s relative strength index (RSI) has built a bottoming structure and is flashing early signs of possibly reversing into a new leg up.

The RSI indicator is a momentum oscillator used to determine whether an asset is oversold or overbought. The RSI’s values range from zero to 100 with the level between 70 to 100 indicating that an asset is overbought while the zero to 30 level indicates that an asset is oversold.

Explains TechDev,

“We’re also at the same number of weeks from the prior impulse top as we were when the all-time high breakout began during the 2014-2017 period.

Looking more closely, we can see the potential for an RSI breakout forming. Compare this to the last time we saw a similar setup in the yellow zone. Then, the breakout in RSI was a key indicator of the larger market shift that followed.”

The analyst shares a chart indicating he expects Bitcoin to surge to around $90,000 by sometime in November or December.

“With confluence, that outlook puts a final consolidation against the upper trend line where it would be expected.

I’m eyeing mid-October for the breakout from this exhausting correction. On the high timeframe, it has formed a literal horizontal line on the high timeframes.

I’ll keep an eye on any potential deviations from the expected orange path and provide updates if we see any shifts.”

BTC is trading at $62,628 at time of writing. The top-ranked crypto asset by market cap is down almost 2% in the past 24 hours.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Investor Dan Tapiero says that Bitcoin (BTC) is setting up for a breakout after printing a massive bullish technical pattern.

Tapiero says that Bitcoin is forming a large, years-long cup and handle structure that is setting BTC up for a breach of the March 2024 highs at $74,000.

A cup-and-handle formation is typically viewed as a bullish continuation pattern, suggesting that an asset is taking a breather after a steep rally before taking out a key resistance level.

But according to Tapiero, Bitcoin can still go through a period of sideways consolidation before witnessing a convincing breakout.

“If that ain’t a cup and handle, I don’t know what is.

Just a great day today across the board.

Stronger payrolls and liquidity-driven BTC and ETH still trading well.

Break of the March highs and we launch. Could still do a little chop chop but days like today confirm…

[Ethereum] has achieved network effect. Only BTC and ETH are in this category, but SOL is moving in this direction as well. This is not an emotional appeal. I’m just looking at usage, revenues, community build, years in existence etc.”

Tapiero expects crypto staking, which typically offers higher yields compared to traditional financial products, to be a key component for the next bull market.

“Powerful driver of this crypto up cycle will be yield (yes, again).

3% on staked ETH now better than 2% on euro two-year, 1.4% on China two-year.

US two-year at 3.7% but expect 2% next year.”

The investor adds that China has opened the liquidity floodgates to stimulate its economy. According to Tapiero, the move is a huge bullish catalyst for Bitcoin.

“Huge macro event.

Things so bad in China, the government flinches.

QE (quantitative easing) for China equity.

Rate cuts.

Big liquidity coming.

Low likely in for China assets.

Bazooka.

Bullish gold, BTC.”

At time of writing, Bitcoin is trading at $63,648, up 3% in the past day.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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