He also tracks Bitcoin’s long-term price momentum, which is illustrated in the chart below as Bitcoin’s price .
This is evidenced by a parallel that he saw towards the end of 2016 where Bitcoin’s monthly RSI broke into “overbought territory” by crossing above the 70 level.
He saw a similar pattern at the end of last year when Bitcoin again became overbought.
He noticed that the early months of the year are historically when Bitcoin tends to struggle.
That potentially explains why Bitcoin tends to lag in performance during the first quarter and surge in the fourth quarter of a given year. “One of them being potentially investors selling some of their assets or some of their Bitcoin to be able to pay the taxman because the IRS has certainly come cracking down on a lot of people as of recent,” he said.