1. Historical Context: Previous Cycle Analysis (2021)
- Pattern Identification: In the last cycle, a small cup and handle pattern was observed (indicated by the purple pointer on the chart). This pattern is typically seen as a bullish continuation signal.
- Momentum Assessment: Despite the formation of this pattern, the MACD indicated weak momentum towards the end of the cycle. This suggests that while the price action appeared bullish, the underlying momentum did not support a strong upward movement, potentially leading to a price correction.
WELL we all know how long we have been waiting after that 🤔🤔🤔
2. Current Cycle Analysis
- Pattern Identification: In the current cycle, a more pronounced cup and handle pattern is forming (highlighted in yellow on the graph). This larger pattern may indicate a stronger bullish sentiment and potential for significant price movement.
- Importance of MACD: As we analyze this current pattern, it is Crucial to monitor the MACD closely. The MACD will provide insights into the momentum behind the price movements. A strong bullish signal from the MACD would support the validity of the cup and handle pattern, suggesting that the current cycle may have more robust upward potential compared to the previous cycle. At this moment, we are staying STRONG!!!!!!!💪🏽
3. Conclusion
- The comparison between the previous and current cycles highlights the importance of both chart patterns and momentum indicators like the MACD. While the cup and handle pattern suggests potential bullish movement, the strength of that movement will depend on the momentum indicated by the MACD.
In addition: To incorporate RSI into my analysis- An RSI above 70 generally indicates that an asset is overbought, suggesting a potential price correction.
- An RSI below 30 indicates that an asset is oversold, suggesting a potential price increase. Continuous monitoring of these indicators will be essential for making informed predictions about Bitcoin's price trajectory. 🚀
#BTC☀ #BitcoinAnalysis #Bitcoin❗
Disclaimer:
The information provided in this analysis is for educational and informational purposes only and should not be considered as financial advice. Cryptocurrency investments are highly speculative and involve significant risk. Past performance is not indicative of future results.
Before making any investment decisions, you should conduct your own research and consult with a qualified financial advisor. The author and any associated parties do not accept any liability for any losses or damages arising from the use of this information.
Invest responsibly and be aware of the risks involved in trading cryptocurrencies.
