Bitcoin’s ‘bullish crosses’ flashed again with average returns of 50% or more

Bitcoin’s (BTC) stochastic RSI has printed a bullish cross with a history of preceding sharp price rebounds.

Stochastic RSI is a momentum indicator that tracks price movement relative to its range for a specific period. This classical indicator is between 0 to 100. Values above 80 are considered overbought, and values below 20 are considered oversold.

Technically, a crossover between the blue %K and orange %D lines from an oversold area indicates a growing upward momentum.

The price of bitcoin has been raised to $120,000.

The historical fractals indicate that Bitcoin’s price recovered sharply within 3 to 5 months each time the stochastic RSI weekly crossed the bullish line. Its gains have averaged at around 56% during such rebounds, ̛including rallies that extended beyond the 90%-return mark.

This includes an approximately 90% rise from the November 2022 bottoms, a 92% increase in 2023 and a 98% jump to Bitcoin’s all-time recent high, around $110,000, in January 2025.

It is not a coincidence that history has a tendency to repeat itself Bitcoin could see another parabolic rise If you align your RSI stochastic cross with the previous bullish crosses, this will deliver a large return by August or July.

Merjin, the trader is an analyst of market trends. says Bitcoin’s price could reach $120,000 if Stochastic RSI fractal works as planned.

The 50-week moving average (50 week EMA, the red wave on the above chart) is another indicator of Bitcoin’s bullish reversal.

Since October 2023, the 50-week EMA has been a good accumulation zone.

The next target for BTC could be around the 200 Week EMA (the Blue Wave), which would mean a price of $50,480. That’s a 40% drop from the current value.

Bitcoin hedge fund buyers are buying dip

The accumulation of hedge funds during price correction is also a bullish sign.

The latest 20-day rolling beta of Bitcoin shows that global crypto hedge funds have increased their Bitcoin exposure. surged to a four-month high. The dip in prices is a sign that institutions are ready to buy and position themselves for possible upside.

The beta measures the degree to which hedge funds’ returns follow Bitcoins movement. If beta is above 1, it means that BTC has outperformed the hedge fund. When beta falls below 1.0 the fund will move less than Bitcoin.

Related: Peak ‘FUD’ hints at $70K floor — 5 Things to know in Bitcoin this week

Beta is at its highest level in 4 months, which means hedge funds see the recent Bitcoin drop as a good opportunity to buy and are expecting higher prices. This reinforces the price forecast of $120,000 discussed earlier.

Cointelegraph reportedThe $120,000+ target is increasingly popular for the summer of 2025.

This article contains no investment recommendations or advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.