A well-known crypto analyst believes three key indicators suggest Bitcoin (BTC) is still in the early stages of a bull market.
The trader, known as TechDev, recently shared a graphic with his 468,700 followers on the social media platform X. This graphic highlights the liquidity cycle, Bitcoin’s Relative Strength Index (RSI), and BTC’s Fisher Transform Indicator.
In the first chart, TechDev compares Bitcoin’s price to the Chinese 10-year bonds (CN10Y) against the M2SL, which measures the money supply in the United States. He suggests that an increase in CN10Y relative to M2SL could lead to significant Bitcoin rallies.
The RSI is a momentum oscillator that helps determine if an asset is overbought or oversold. Its values range from zero to 100. Levels between 70 and 100 indicate that the asset is overbought. Conversely, levels from zero to 30 suggest it is oversold. TechDev also uses Bitcoin’s Fisher Transform indicator to identify potential trend reversals.
The graphic indicates that both the RSI and the Fisher Transform are showing patterns similar to those before Bitcoin's massive bull run in 2017. As of now, Bitcoin is trading at $57,793.