This is Bitcoin on the 1W time-frame. I am using this long-term chart today because I found a unique formation occurrence that I want to share with you.
As you see BTC is currently pulling back within a Channel Up that started after the July 2021 market bottom. The 1W MA50 (blue trend-line) is currently in support around $46500. The exact same Channel Up was last seen forming after the March 2020 COVID flash crash which formed the market bottom at that time. The 1W MA50 was also in support then and after that Channel Up Higher Low (black curve shape) following the rejection on the previous market high (red zone designated by the red arrows) was completed, Bitcoin started a two month Parabolic Rally that exceeded the 2.0 Fibonacci extension.
Right now BTCUSD seems to be pricing that last Higher Low on the July Channel Up. As long as the 1W MA50 holds, if the price breaks above the previous All Time High again, then we have a legitimate case for a new Parabolic Rally. Notice how the RSI patterns of 2020 and 2021 are literally identical.
Do you think that history will repeat itself and a new Parabolic Rally is right around the corner? Feel free to share your work and let me know in the comments section!
What about the giant Bearish Divergence on RSI from Dec '20 to Nov '21?
Crypto-RyGuy
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@bryanandrew, i made a chart about this like two weeks ago saying we are gona drop from our divergence. btc is known for this.... this is what happened over the spring in summer
arsalan_sh
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@bryanandrew, RSI divergences are not working like that! The max period to make divergence legit is 2x the RSI period which is 2x14= 28 weeks! so you cannot count from dec 20' to nov 21'.
kingtut101
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@bryanandrew, The bearish divergence was from beginning of January to mid-May. The RSI had a bullish reversal mid-July. From that point forward, the RSI is going up with the price, so no more bearish divergence on the RSI for a few months now.