Hello dear community! Let's explore the relationship between the MACD and Bitcoin price action on the Weekly time-frame and draw conclusions based on historical data.
Phases 1 - 5 in 2018 - 2020
Upon analyzing the MACD window, we can discern distinct phases characterized by downward crossovers in the moving average (MA). Commencing from 2018, Phase 1 began with the first downward crossover on 22nd January 2018. In Phase 2, the second downward crossover materialized on 30th July 2018. Moving to Phase 3, the third downward crossover occurred on 12th November 2018. Transitioning to Phase 4, the fourth downward crossover took place on 19th August 2019.
By analyzing the first and fourth downward crossovers, we can establish a trendline that was subsequently breached when the bull market emerged.
Phases 1 - 5 in 2021 - 2024
Phase 1, the subsequent market phase, commenced shortly after the MACD reached a new all-time high around 19th April 2021. In Phase 2, the second downward crossover occurred on 29th November 2021. Following that, in Phase 3, the third downward crossover took place on 18th April 2022. Similar to the consolidation observed in 2019, a period of pause was experienced. Finally, in Phase 4, the fourth downward crossover occurred on 29th May 2023. It is important to note that the fifth phase is yet to be witnessed, as we await the occurrence of the fifth downward crossover in 2024.
Can we utilize this data to gain insights into the potential future movement of Bitcoin?
It is often observed that history repeats itself in financial markets, albeit with some variations in volatility. Therefore, based on the MACD study, we can glean a clue regarding how the price might behave during Phase 4, which suggests a downward movement.
Furthermore, let's briefly examine the RSI indicator. In Phase 4 of 2019, the RSI consolidated within a downward channel, and upon observing the current state in 2023, it appears that the RSI is exhibiting a similar pattern.
Phases 1 - 5 in 2018 - 2020
Upon analyzing the MACD window, we can discern distinct phases characterized by downward crossovers in the moving average (MA). Commencing from 2018, Phase 1 began with the first downward crossover on 22nd January 2018. In Phase 2, the second downward crossover materialized on 30th July 2018. Moving to Phase 3, the third downward crossover occurred on 12th November 2018. Transitioning to Phase 4, the fourth downward crossover took place on 19th August 2019.
By analyzing the first and fourth downward crossovers, we can establish a trendline that was subsequently breached when the bull market emerged.
Phases 1 - 5 in 2021 - 2024
Phase 1, the subsequent market phase, commenced shortly after the MACD reached a new all-time high around 19th April 2021. In Phase 2, the second downward crossover occurred on 29th November 2021. Following that, in Phase 3, the third downward crossover took place on 18th April 2022. Similar to the consolidation observed in 2019, a period of pause was experienced. Finally, in Phase 4, the fourth downward crossover occurred on 29th May 2023. It is important to note that the fifth phase is yet to be witnessed, as we await the occurrence of the fifth downward crossover in 2024.
Can we utilize this data to gain insights into the potential future movement of Bitcoin?
It is often observed that history repeats itself in financial markets, albeit with some variations in volatility. Therefore, based on the MACD study, we can glean a clue regarding how the price might behave during Phase 4, which suggests a downward movement.
Furthermore, let's briefly examine the RSI indicator. In Phase 4 of 2019, the RSI consolidated within a downward channel, and upon observing the current state in 2023, it appears that the RSI is exhibiting a similar pattern.
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