In this chart I illustrate a pattern that I believe may potentially play out similarly to a previous short-term bull run that occurred in mid to late February. This chart is YTD at one day timescale. Below the chart you’ll see three separate indicators: MACD, Stochastic RSI and Accumulation/Distribution (ADL).
Focusing on ADL, we see that we are in a general uptrend that appears to have leveled slightly in a comparable manner to how it did in mid-February. Of course, this alone means nothing, however, refocusing on Stoch RSI we see a much more glaring pattern. Currently, we are in a situation where we have leveled off flat for an extended period. If you look back to the purple highlighted area, you’ll see a similar set up. Also, we are currently dipping a bit from the plateau which is exactly what happened in mid-February. Moving up to MACD, we also see a remarkably similar pattern forming with volume looking identical. Comparing the MACD and signal lines to mid-February levels (highlighted in orange) we see that we have much more potential momentum to embrace, we also see a similar alignment forming, but lower on the scale.
Now, in the actual chart you’ll see Bollinger Band (BB) and EMA indicators, a purple horizontal line and two vertical lines (green and red) as well as a purple rectangle. The purple rectangle represents the February bull run. The green line is where we may be now, the red line is where the fun ended. The purple horizontal line marks $2T market cap, which is where I believe we may be heading in the short term (6-7 days). The long position box at the end of the chart represents what that growth would look like in the green area or what could happen if the market moves in the other direction in the red area. Notice the BB and EMA look identical to February, all these indicators appear to be confirming the same thing. Of course, anything can happen, the market could always move in the opposite direction.
To recap, I am hoping that we are about to experience a short-term bull run over the following 6-7 days that will take the total market cap to retouch $2 trillion. This is obviously not financial advice, but this chart could be used as something of a reference, considering that many top coins closely follow the general market cap.
Focusing on ADL, we see that we are in a general uptrend that appears to have leveled slightly in a comparable manner to how it did in mid-February. Of course, this alone means nothing, however, refocusing on Stoch RSI we see a much more glaring pattern. Currently, we are in a situation where we have leveled off flat for an extended period. If you look back to the purple highlighted area, you’ll see a similar set up. Also, we are currently dipping a bit from the plateau which is exactly what happened in mid-February. Moving up to MACD, we also see a remarkably similar pattern forming with volume looking identical. Comparing the MACD and signal lines to mid-February levels (highlighted in orange) we see that we have much more potential momentum to embrace, we also see a similar alignment forming, but lower on the scale.
Now, in the actual chart you’ll see Bollinger Band (BB) and EMA indicators, a purple horizontal line and two vertical lines (green and red) as well as a purple rectangle. The purple rectangle represents the February bull run. The green line is where we may be now, the red line is where the fun ended. The purple horizontal line marks $2T market cap, which is where I believe we may be heading in the short term (6-7 days). The long position box at the end of the chart represents what that growth would look like in the green area or what could happen if the market moves in the other direction in the red area. Notice the BB and EMA look identical to February, all these indicators appear to be confirming the same thing. Of course, anything can happen, the market could always move in the opposite direction.
To recap, I am hoping that we are about to experience a short-term bull run over the following 6-7 days that will take the total market cap to retouch $2 trillion. This is obviously not financial advice, but this chart could be used as something of a reference, considering that many top coins closely follow the general market cap.
Trade closed: target reached:
Though it took a few days longer than expected, we certainly hit our target of a $2T market cap! Currently standing at $1.975T at time of writing after hitting $2T on the dot yesterday around 4pm EST. The only question now is what happens next, a continued uptrend or a reversal?
Looking at MACD, we see that momentum is playing out exactly as we predicted. In fact, it appears to be doing a little better than February. Price level seems to be breaking right through upper resistance levels, it feels very bullish to me. Notice the long position box, we are looking pretty darn good already, but I don’t think were done yet!
Unfortunately, I can't seem to add a second chart here so I will be publishing a new idea in order to to do.