Bitcoin Price Forecast: Overbought RSI Indicates BTC Could Hit $140,000 – Here’s Why #CriptoNews

Meanwhile, the next instance that a ‘golden cross’ occurred, the price rallied from $60,000 to $106,000, which is BTC’s current all-time high.

However, it is worth noting that there have been some false positives along the way. These are bullish crossovers that don’t end up propelling BTC to higher highs.

In a previous article, we shared a bullish price target of $140,000 if this turns out to be one of those crossovers that push BTC to new all-time highs. However, two other scenarios can still unfold where the outcome will be different.

The first is a weak crossover. This is a scenario where the rally does not manage to gain enough strength to push BTC to higher highs.

Interestingly, every time this happened, the Relative Strength Index (RSI) failed to reach overbought levels.

In contrast, the ‘golden crosses’ that ended up propelling BTC to higher highs were followed by a strong push in the RSI to overbought territory.

Latest Rally Has Resulted in Overbought RSI

In the case of our latest rally, this has already been the case as the RSI currently sits at 71 – meaning that the uptrend has gained strong momentum.

The second scenario that may result in a failed push to new ATHs is a post-overbought pullback. However, this is not necessarily bearish. In fact, it is often the necessary move that the market needs to make to raise enough liquidity to keep the rally going.

The most relevant support in all of these bullish scenarios has been the 200-day EMA. The price has only dropped below this marker one time in the instances that have pushed BTC to new all-time highs.

Hence, as long as the price stays above that threshold – or the price action pulls a bear trap, as it happened once – BTC will remain on track to reach this long-term target of $140,000 per token.