#Trade Tensions Ease

Analyst Explained; Bitcoin Could Reach 400,000 Dollars!
Since the end of March, Bitcoin has gained significant value, rising from $82,000 to $104,000 as of yesterday. This sudden and dramatic recovery has created new excitement among analysts. Bitcoin's strong fundamentals and limited supply support predictions that the upward movement will continue. Analyst Plan B argues that Bitcoin's current value is well below what it should be, especially when compared to gold. As the Cryptocoin family, we will examine Bitcoin's price movements today.

Currently, Bitcoin's RSI (Relative Strength Index) level is at 69; this is just below the 70 level, which is generally considered the "overbought" zone. Plan B expects Bitcoin's RSI level to exceed 80 for at least a four-month period. This situation has also been seen during the bull market periods of 2021, 2017, and 2013. In the months when the RSI exceeded 80, Bitcoin's monthly returns generally surpassed 40%.

Bitcoin is Showing Bull Momentum
If this pattern continues, it may be possible for Bitcoin to increase its price from $104,000 to $400,000 with uninterrupted growth over four months. Such price increases have occurred in previous bull cycles as well. During the bull markets of 2021 and 2017, Bitcoin had rapidly gained value when RSI levels rose. Analysts note that the current rise of Bitcoin resembles similar rally periods in the past.
The 200-week moving average is signaling a rise, moving even further away from the geometric mean. Historically, such a divergence indicates that a bull market is developing and suggests that prices will rise. The growing distance between these two averages is interpreted as a strong sign that the market has entered a long-term bull cycle.

Plan B's data shows that Bitcoin's current market price is trading above the "realized price". This indicates that most investors are in profit, and market sentiment is positive. As long as the price stays above this level, the likelihood of entering a bear market remains low.

Bitcoin's price is on track to surpass all previous all-time highs. If the RSI level exceeds 80 and remains high, similar to previous bull cycles, it may be possible for Bitcoin to reach $400,000 or even higher. The future of the cryptocurrency is becoming increasingly positive as the market cycle progresses.