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The Bitcoin (BTC) price has plunged back to the $120,000 level after hitting a new high of $124,196 in today’s trading session. Despite the latest rally, PlanB, the founder of the stock-to-flow (S2F) model, hinted at a bearish prediction, citing Bitcoin RSI.
What Bitcoin RSI reveals
Drawing on a chart, PlanB revealed in an X post that Bitcoin's monthly Relative Strength Index (RSI) is almost at 75. The analyst further questioned whether an RSI value above 80 could signal a potential shift in BTC's price.
Understandably, the RSI is a technical indicator that could provide insight into the price of a digital asset. Generally, an RSI below 30 indicates oversold, while a value above 70 signals that an asset is overbought.
Based on historical data, Bitcoin is known to hit an RSI of 75 when bullish conditions are strong. Hence, as projected on the chart posted by PlanB, the Bitcoin price may experience a short-term pullback if the RSI is above 80.
However, if the RSI at 75 holds, BTC could rally as high as $170,000 this cycle, a forecast the analyst hinted at via a community-based poll.
As of press time, the BTC price hovered around $120,690, representing a 1.2% increase in the last 24 hours. In addition, investors remain active as the daily trading volume increased by 30.3% to $97.8 billion.
Bitcoin hit new milestones
The bullish momentum on the BTC market has pushed the leading coin to new milestones. As U.Today reported, Bitcoin has surpassed Alphabet, the parent company of search giant Google, in market valuation.
Bitcoin achieved this feat after hitting a new record peak of $124,128 earlier in today’s trading session. The leading coin also broke another record, surpassing gold once again on the year-to-date basis.
Following the latest price surge, Polymarket bettors predicted that BTC has a 46% chance of surpassing $130,000 this August.
In a more bullish prediction, Galaxy Digital founder Mike Novogratz claimed BTC could hit $1 million in the future.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team