kjetilt

The 2 split bull market thesis

INDEX:BTCUSD   Bitcoin

When looking at the 2 week chart, the bull market seems to be split into two when looking at the stochastic rsi. We first rise above 80 (yellow box). Then we go down under 20, which is the start of the red box. Then we go above 80. The point of this is the pattern, not to spot the absolute top. Therefore the red box ends when we go down to 20 again, which is a little while after the top has been reached. In the space between the boxes, we make two waves, having three bottoms, varying in size in each bear market. First cycle we didn't have a space between the red box and the yellow box, not making a two wave structure. But the rest did have it. And also, we have now reached the trend line of the cycle tops on the rsi. Looking left we also did this in 2010 and 2013 in the yellow box. So the question is, will we repeat what we did in 2013 and go below the 20 on the srsi, marking the start of the red box and go above 80 again? Or maybe I am completely wrong and we are already in the red box, since we did have a dip to 30 on stochastic rsi. That being said, we have had a dip below 20 in every single cycle before.
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