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Renowned crypto analyst Tony Severino has recently shared insights on the Bitcoin Percentage Price Oscillator (PPO) turning red after hitting $102,000. This development has significant implications for Bitcoin amidst the current bull market frenzy.
Bitcoin’s Weekly PPO Signals Red Flag at $102,000
In a recent X post, Severino pointed out that the Bitcoin weekly PPO has transitioned into the red zone after hitting the $102,000 mark. He had previously mentioned that a red PPO on the weekly chart could signify the nearing end of Bitcoin’s bull run. This warning suggests that the market may be approaching its peak.
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Severino further elaborated on how this potential market top could unfold, indicating that Bitcoin’s price trajectory might continue upward once the red signals emerge, with the market likely reaching its peak before the red indicator dissipates.
Additionally, Severino highlighted the significance of the TD Sequential as another crucial indicator pointing towards a potential Bitcoin peak in the first or second quarter of this year. He emphasized that the quarterly candlesticks for BTCUSD are currently showing an 8-count, with historical precedence suggesting that a TD9 count marked the end of the 2017 bull run.
With historical patterns in mind, the Bitcoin price could potentially peak by July, though Severino suggests that the market might hit its top even earlier, possibly in Q1. He noted that market peaks often align with the 8th candlestick in the sequence, while acknowledging the chance of an extended bull market beyond Q2 if the TD8/9 setups deviate from the norm.
However, Severino also expressed skepticism regarding Bitcoin’s sustained upward trajectory without a notable correction. He previously forecasted a potential Bitcoin price peak below $150,000 around January 20, attributing this projection to the cyclical impact of Donald Trump’s inauguration and the market’s anticipation of pro-crypto policies under his administration.
Bitcoin Price Correction Approaching Conclusion
Amidst these insights, industry analysts are optimistic that Bitcoin’s recent downtrend could be nearing its conclusion, especially with the crypto asset reclaiming the $100,000 threshold. In a recent post, crypto analyst Titan of Crypto suggested an impending Bitcoin price surge as the 7-week consolidation phase may be coming to an end.
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Another analyst, Mikybull Crypto, echoed this positive sentiment by indicating that Bitcoin has regained its bullish momentum following its ascent above $100,000, invalidating previous bearish indications. With Bitcoin back above this crucial level, the analyst anticipates a sustained rally leading to a potential cycle peak.
At the time of writing, Bitcoin is trading around $101,677, showing over a 2% increase in the last 24 hours according to CoinMarketCap data.
Featured image created with Dall.E, chart from Tradingview.com