Bitcoin ‘bullish cross’ with 50%-plus average returns flashes again

Bitcoin ( $76,221.00 ) ’s (BTC) stochastic RSI has printed a bullish cross with a history of preceding sharp price rebounds.

Stochastic RSI tracks momentum based on price movements relative to their range over a given period. This classic indicator operates between 0 and 100, with values above 80 considered overbought and below 20 deemed oversold.

A crossover of the blue %K line above the orange %D line from an oversold region technically suggests growing upward momentum.

Another $120,000 BTC price target emerges

Historical fractals show that each time the weekly stochastic RSI made the bullish cross, Bitcoin ( $76,221.00 ) underwent sharp price recoveries within three to five months. Its gains have averaged at around 56% during such rebounds, ̛including rallies that extended beyond the 90%-return mark.

That includes a roughly 90% rally from November 2022 lows, 92% gains in late 2023, and a staggering 98% move into Bitcoin ( $76,221.00 ) ’s recent all-time high of around $110,000 in January 2025.

If history repeats, Bitcoin ( $76,221.00 ) could see another parabolic rise by July or August, aligning with previous stochastic RSI bullish crosses that delivered outsized returns.

Market analyst Merjin the Trader says Bitcoin ( $76,221.00 ) ’s price can reach at least $120,000 if the Stochastic RSI fractal plays out as intended.

Meanwhile, Bitcoin ( $76,221.00 ) ’s bullish reversal outlook receives further cues from its 50-week exponential moving average (50-week EMA; the red wave in the chart above) at around $77,230.

The 50-week EMA wave has served as a strong accumulation zone for traders since October 2023.

In case BTC’s price breaks decisively below the 50-week EMA, it could head toward the next support target at around the 200-week EMA (the blue wave), near $50,480, down approximately 40% from current prices.

Bitcoin ( $76,221.00 ) hedge funds are buying the dip

Another bullish sign comes from hedge fund accumulation during the ongoing price correction.

Global crypto hedge funds are increasing their Bitcoin ( $76,221.00 ) exposure, as seen in the latest rolling 20-day beta to BTC, which has surged to a four-month high. This suggests that institutional investors are buying into the dip, positioning themselves for potential upside.

Beta measures how closely hedge fund returns track Bitcoin ( $76,221.00 ) ’s movements. When beta rises above 1.0, it indicates that the fund rises more than BTC’s price. Conversely, when the beta drops below 1.0, the fund moves less than Bitcoin ( $76,221.00 ) .

Related: Peak ‘FUD’ hints at $70K floor — 5 Things to know in Bitcoin ( $76,221.00 ) this week

The beta is now at a 4-month high, meaning hedge funds believe the recent Bitcoin ( $76,221.00 ) dip is a buying opportunity and expect higher prices ahead, reinforcing the $120,000 price outlook as discussed above.

As Cointelegraph reported, the $120,000+ is becoming a popular target for summer 2025.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.