- December 3, 2022
- Posted by: Tradingshot Articles
- Category: Cryptocurrency
We rarely post Bitcoin (BTCUSD) analyses on the 1M (monthly) time-frame, but this one does justice is showing the complete long-term picture.
On a monthly basis, Bitcoin has been forming a bottom since the June Low, within a zone formed by the Fibonacci MA and Multiple 1. At the same time the 1M RSI has been trading exactly at the bottom of the Channel Down pattern that goes back to April 2013.
This is the painful but necessary bottom process that BTC has to go through on all of its Cycles and it appears that it bears more resemblance with the early 2015 sequence. The cyclical pattern on every Cycle is the same. Lower Lows, a Resistance and a Cup like formation which after it breaks the Resistance starts the parabolic rally to the new Cycle High. Based on this model, the next Resistance break-out may not happen until early 2024.
What are your thoughts on this? Is Bitcoin about to complete a painful but necessary bottom process? Feel free to let me know in the comments section below!