This is the popular analysis made by an account named TradingShot on Tradingview about 10 days ago that partially looked at Bitcoin’s RSI pattern on the 1W time-frame in relation to the current market structure and that of mid 2020:
When he expanding this pattern and elaborating more on the similarities of the two structures, he discovered that if we look into the RSI from a slightly different perspective and by disregarding the March 2020 crash due to the COVID irregularity, we can see that the prevailing pattern is a Triangle (green pattern) that after an initial “soft” break-out to the upside (blue Arc pattern), it pulled back to test the (former) top/ Lower Highs trend-line of the Triangle. After that held the test(August 2020), the massive parabolic rally of October 2020 – April 2021 started. He calls that point the ‘Rally kickstart Test’. The 1W RSI followed a similar structure during that time, holding and rebounding on its Pivot line (formerly a Resistance).
On today’s structure, we see that BTC currently had that ‘Rally kickstart Test’ candle two weeks ago. On top of holding the former top zone of the Triangle, it also closed above the 1D MA50 (blue trend-line). The RSI is currently on its Pivot and holding. If we have successive 1W candle closings above the Triangle’s top, does it mean that we have a new parabolic rally in the making?
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