With this new information, I am as bullish as I can be right now.
So, I was looking for more solid evidence that bitcoin is prime for a huge explosion, and I found some really good evidence on the monthly time frame using Japanese candlestick analysis. In the first part of this analysis I spoke mostly of the RSI and how the Weekly RSI is exhibiting failure swings, I also explained that those are failure swings because the RSI is hitting a higher low for each candle that closes below the previous one, and I also explained that the calculation of the RSI uses the candle's closing prices rather than their respective highs and lows.
Part 2:
1.) There is a bullish engulfing pattern (a candle stick that contains the prior candle stick in its whole body) that occurred recently in yellow, and that is enough at the moment to say that the last bear run was over and it is enough for me to say that there is a new bull run. This give me the foundation to say that there is a rising three methods, which can be seen in light blue, because the rising three methods is a continuation pattern, and it is defined by having multiple candle sticks within the body of the first candle stick. Ideally, there would be three candle sticks occurring in the much larger body. So, the first candle stick has a long body, the candle sticks in between it fits within the large bodied candle, and the resistance of a rising three method is the bottom of the first, and since this is a continuation pattern, I am claiming that this is a continuation from the move to 8000 in summer.
*If This is a rising three methods, there will be an enormous bull rally, one equivalent or greater than the initial candle stick.*
2.) This is also a possible tower bottom, because the candles have gotten significantly smaller in comparison to the candle sticks prior and as the price has gotten lower.
Previous Analysis:
So, I was looking for more solid evidence that bitcoin is prime for a huge explosion, and I found some really good evidence on the monthly time frame using Japanese candlestick analysis. In the first part of this analysis I spoke mostly of the RSI and how the Weekly RSI is exhibiting failure swings, I also explained that those are failure swings because the RSI is hitting a higher low for each candle that closes below the previous one, and I also explained that the calculation of the RSI uses the candle's closing prices rather than their respective highs and lows.
Part 2:
1.) There is a bullish engulfing pattern (a candle stick that contains the prior candle stick in its whole body) that occurred recently in yellow, and that is enough at the moment to say that the last bear run was over and it is enough for me to say that there is a new bull run. This give me the foundation to say that there is a rising three methods, which can be seen in light blue, because the rising three methods is a continuation pattern, and it is defined by having multiple candle sticks within the body of the first candle stick. Ideally, there would be three candle sticks occurring in the much larger body. So, the first candle stick has a long body, the candle sticks in between it fits within the large bodied candle, and the resistance of a rising three method is the bottom of the first, and since this is a continuation pattern, I am claiming that this is a continuation from the move to 8000 in summer.
*If This is a rising three methods, there will be an enormous bull rally, one equivalent or greater than the initial candle stick.*
2.) This is also a possible tower bottom, because the candles have gotten significantly smaller in comparison to the candle sticks prior and as the price has gotten lower.
Previous Analysis:
Comment:
This is an image of the failure swings on the weekly.
Comment:
Here is a tower bottom on the daily.