STOCHASTIC RSI - INDICATING POSSIBLE BEGINING OF NEW BULL CYCLE
Vertical analysis of BTC paired with the stochastic RSI on the 14-day chart.
Key
- Yellow boxes = represent bear market/bear prices
- Thick green line on stochastic rsi = bull market resistance
Taking a look a historical data this method has proven its self as a very solid way to predict both bottoms and tops of the market cycles(although much better at predicting trend directions rather than exact dollar value bottoms/ tops) and thus we are able to sue this analysis as part of our overall direction analysis in whether we expect a further upward on downward continuation from here. As with all analysis, one technical analysis alone cannot give you all the info you need to accurately predict the market direction but this analysis lays the basis of many further possible predictions.
Looking at the chart we can see the bear markets reflected as yellow boxes on the bitcoin chart and this is reflected on the stochastic rsi as well. While the stochastic rsi is below 20 we have historically been in either a full-blown bear market or a period of strong market consolidation, just as we have seen in the last few months. We can see every single time we manage to have a positive cross below the 20 stoch RSI we see a strong move upwards (which has held true to the recent 63% increase on BTC). Furthermore, a break over the 20 stochastic RSI has historically shown the beginning of a new cycle upward + confirmation that the bottom has been seen (this is what we are currently seeing play out)
Going off this chart alone I would assume this move will continue after this current small healthy correction and we will see a strong move to new ATH for crypto.
Key
- Yellow boxes = represent bear market/bear prices
- Thick green line on stochastic rsi = bull market resistance
Taking a look a historical data this method has proven its self as a very solid way to predict both bottoms and tops of the market cycles(although much better at predicting trend directions rather than exact dollar value bottoms/ tops) and thus we are able to sue this analysis as part of our overall direction analysis in whether we expect a further upward on downward continuation from here. As with all analysis, one technical analysis alone cannot give you all the info you need to accurately predict the market direction but this analysis lays the basis of many further possible predictions.
Looking at the chart we can see the bear markets reflected as yellow boxes on the bitcoin chart and this is reflected on the stochastic rsi as well. While the stochastic rsi is below 20 we have historically been in either a full-blown bear market or a period of strong market consolidation, just as we have seen in the last few months. We can see every single time we manage to have a positive cross below the 20 stoch RSI we see a strong move upwards (which has held true to the recent 63% increase on BTC). Furthermore, a break over the 20 stochastic RSI has historically shown the beginning of a new cycle upward + confirmation that the bottom has been seen (this is what we are currently seeing play out)
Going off this chart alone I would assume this move will continue after this current small healthy correction and we will see a strong move to new ATH for crypto.