TL;DR
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Bitcoin’s jump to $87,500 has sparked bullish calls from top analysts, with some predicting a further rally in the short term.
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While past cycle comparisons suggest more upside, the overheated RSI hints that a short-term cooldown might come first.
BTC on the Move
Bitcoin’s price remained relatively stable over the past several days, hovering around $84,000-$85,000. However, the new business week kicked off on the right foot, with its valuation jumping above $87,500.
The surge caught the eye of numerous industry participants, some of whom believe a further rally could be brewing. Scott Melker (the host of The Wolf of All Streets Podcast) told his one million followers on X that BTC has been “breaking through descending resistance from the all-time high.” He claimed the price needs to spike beyond $88,804 “to break the series of lower highs and lower lows.”
The X user JAVON MARKS chipped in, too. They suggested that BTC has invalidated a falling wedge pattern with its latest price pump, pointing out that this has resulted in a massive rally in the past.
For their part, 0xNobler believes “the Golden Bull Run” could start this week. They think BTC has yet to mirror its positive performance from the 2020-2021 and 2016-2017 cycles, envisioning an ascent to as high as $200,000. In addition, the analyst forecasted that many altcoins “are set to pump 150-200x.”
What Are Indicators Signaling?
Some important metrics also suggest that BTC’s price could be on the verge of a further increase. The asset’s exchange netflow, for instance, has been negative in the past week, suggesting a shift from centralized platforms toward self-custody methods. This could be viewed as a bullish factor in the short term since it reduces the immediate selling pressure.
Meanwhile, the renowned analyst Ali Martinez recently reminded that BTC market peaks have historically coincided with surges in retail activity. He said the rise from $70,000 to the ATH of $110,000 (observed in January this year) lacked that, hinting that the market top has yet to be reached.
Despite the bullish sentiment across the community, one indicator points to a potential pullback in the near future. This is the Relative Strength Index (RSI), a momentum oscillator that tracks the speed and magnitude of recent price changes. It varies from 0 to 100, and readings above 70 are considered bearish since they signal that the asset could have entered overbought territory. Currently, the ratio stands at approximately 73.