Bitcoin’s price surge mirrors December 2020, with RSI and Bollinger Bands showing similar trends.

Market indicators suggest Bitcoin could hit $135,000 before facing potential corrections.

RSI at 78.60 signals overbought conditions, with high volatility indicated by widening Bollinger Bands.

Bitcoin has recently been showing signs of a pattern that mirrors its remarkable price movement from December 2020. The cryptocurrency, currently priced at approximately $94,110, has surged similarly to its previous run-up

Market indicators, such as the Relative Strength Index (RSI) and Bollinger Bands, suggest that Bitcoin’s trajectory could be poised to follow the same bullish path it did almost three years ago, potentially pushing prices up to $108,000, then $99,000, and eventually peaking at $135,000.

Similar Price Patterns to December 2020

Looking at the charts from December 2020 and the present day, Bitcoin's price behavior against both the U.S. Dollar and Tether (USDT) shows striking resemblances. Between December 2020 and early 2021, Bitcoin experienced a sharp upward trend, rising from around $20,000 to nearly $31,000. This was marked by periods of RSI oscillation, signaling overbought conditions and potential price retracements.

Source: X

Fast forward to 2024, Bitcoin's price has again crossed the $94,000 mark, indicating a similar breakout to that seen in 2020. The RSI readings are high once again, suggesting that the market may be entering an overbought zone, mirroring the market conditions that preceded a price correction back then

Bitcoin’s recent price movements highlight strong market activity. At the time of writing, Bitcoin’s market capitalization is $1.86 trillion, with a 24-hour trading volume of $76.39 billion. The circulating supply stands at 19.78 million BTC, nearing its total supply of 21 million BTC

Source: CoinMarketCap

The chart also shows an upward trend in Bitcoin's price over the past 24 hours, moving from approximately $92,380 to over $94,000. The green and red bars on the chart reflect periods of consolidation and sharp upward price surges, indicating intense buying pressure and an overall positive market sentiment.

RSI and Bollinger Bands Signal Potential Overbought Conditions

The RSI, which tracks the momentum of Bitcoin’s price movement, has recently surged to 78.60, well into the overbought zone

Source: TradingView

This reading suggests that Bitcoin may face a correction if the price remains in this region. In December 2020, similar RSI levels were observed before Bitcoin experienced a price retracement.

Furthermore, the Bollinger Bands, which track price volatility, have also shown widening as Bitcoin’s price approaches the upper band

Source: TradingView

This indicates heightened market volatility, often seen before significant price movements.