Bitcoin (BTC) Price May Explode to $400k as Bullish Momentum Builds

Since the end of March, Bitcoin has grown significantly, increasing its price from $82,000 to $104,000 as of press time. The sudden and dramatic recovery has generated new enthusiasm among analysts.

Since the beginning of March, Bitcoin (CRYPTO: BTC) has seen a significant price increase, rising from $82,000 to $104,000 at press time.

This sudden and dramatic recovery has brought back the enthusiasm of some analysts, who continue to predict that the cryptocurrency will keep moving upward. Bitcoin’s strong fundamentals and limited supply support forecasts of a lasting bull market.

According to Plan B’s latest analysis, Bitcoin’s current value is much lower than what it might be, especially in comparison to gold.

At present, Bitcoin’s RSI stands at 69, just a point shy of the 70 level, which is commonly recognized as overbought territory. However, Plan B anticipates that Bitcoin will likely experience at least four months with an RSI mark above 80, a scenario that unfolded in the 2021, 2017, and 2013 bull market phases.

Whenever its RSI reading has crossed the 80 threshold, Bitcoin’s monthly returns have typically exceeded 40%.

If this pattern continues as expected, we might witness four months of uninterrupted upward movement, potentially increasing Bitcoin’s price from $104,000 to $400,000.

This kind of price rise has occurred in previous bull periods. As we can see in the chart above, during the bull markets in 2021 and 2017, Bitcoin appreciated rapidly when RSI values were high.

Analysts also highlight that the 200-week moving average is pulling farther away from the geometric average, which is a bullish sign.

Throughout history, such a divergence has signaled the development of a bull market, suggesting that prices will surge. The distance between these moving averages strongly indicates that the market is entering a long-lasting bull period, pushing Bitcoin upward over the long run.

Plan B’s data reveals that the cryptocurrency is currently trading above the realized price, which implies that most holders are currently in profit, a factor that supports a bullish market outlook. As long as the price stays above the realized level, the likelihood of a bear market appears slim.