- January 30, 2023
- Posted by: Tradingshot Articles
- Category: Cryptocurrency
We only look at Bitcoin (BTCUSD) on the monthly time-frame when it is necessary to keep a long-term perspective and not miss the big picture. This is one of those times as the monthly (1M) candle, following January’s hyper strong rise and impressive start to the year, is now testing the 1M MA50 (blue trend-line). This is a critical Resistance and last time BTC closed above it was on July 2022. Needless to say, a close above it will be a massive buy signal.
The true catalyst though may be the 1M RSI. As you see it is also testing its MA trend-line (yellow), having been trading below it since May 2022. The real interesting fact here is that every time the 1M RSI broke above its MA, Bitcoin was well past its bottom and trading on its new Bull Cycle.
An astonishing feat is that the time range between those RSI monthly break-outs is quite similar, 39 months then 42 months and if it closes above it now, then 45 months. We can say that each sequence is 3 months longer.
On top of that, the 1M candles that made those break-outs are not far off in terms of rises, each representing very strong monthly closings (+47%, +33%, +33% and now +40%). Based on all the above, it appears that the market is on the verge of breaking out to a new multi-month rally.
Do you agree? Feel free to let me know in the comments section below!