Bitcoin could explode parabolically

Indicator shows: Bitcoin could explode parabolically – if the past repeats itself

Bitcoin has seen mixed price action recently, with the bulls unable to take control of the trend after the price hit $28,500.
The rejection here has been quite intense, and BTC has yet to show any signs of strength in the aftermath of this event.
The fact that the bulls prevented a deeper rebound is positive because it invalidates the possibility that this recent high represents a blow-off top.
One trader is now commenting that there is an incredibly bullish indicator flashing for bitcoin. He points to the cryptocurrency’s monthly RSI and Bitcoin Revolution writes that historically, a monthly close above a certain level that it approaches is followed by parabolic moves to the upside.
Historically, these moves have had an average return of 1,010%, but their size and length appear to be diminishing over time.

Bitcoin and the overall crypto market have declined over the past 12 hours, which seems to be the direct result of the pressure Ripple’s XRP is putting on the market due to its recent sell-off.

However, how the market trends in the medium term is in all likelihood not dependent on XRP – and that means this latest round of selling pressure may mark a knee-jerk reaction from investors.

One analyst comments that Bitcoin’s monthly RSI is an incredibly bullish sign of where BTC is heading next.
Bitcoin struggles for momentum after rejection at $28,500

At the time of writing, Bitcoin is trading at $27,900 and BTC has yet to receive enough buy-side support to break above heavy resistance, which lies in the lower $28,000 region.

For now, this top could mark a blow-off top.

Indicator signals: BTC is on the verge of a parabolic rise

One trader writes in a tweet that Bitcoin could be on the cusp of a parabolic move in the coming days and weeks. He points to the cryptocurrency’s so-called monthly RSI as an indicator of this.

„BTC – Monthly RSI. The monthly candle is about to close above 80. When it does, the bullish trend continues, with an average return of 1010.87%. Each cycle is shorter.“

The coming days should shed light on Bitcoin’s trend, as continued weakness could confirm $28,500 as a local high and lead to a deeper retracement.