BTC Phase 4 Resistance
BTC is currently testing the All time High.
Will BTC just plough through the resistance because of the ETF's or is there any other scenario possible? There is an interesting correlation and there are also key differences between the 2017 Bull Market Cycle and the current timeframe if we analyse the weekly and monthly timeframe.
Historic Cycle 2017
As BTC went through the previous resistance zones in 2017 the pattern was identical until phase 3. Back then there was heavy resistance and we had a correction to the highs of phase 2, before continuing higher.
Current Cycle 2024
In this current cycle we have not had a healthy correction to the highs of phase 2, instead prices continued to climb higher. The resistance zone for phase 3 in both cases was almost identical at around 40% under the previous All time High. As we approach the resistance of phase 4, are pricing continuing to climb higher?
Historic 86 Level Resistance
In 2017 we got rejected at phase 4 when the RSI reached the 86 Level on the Weekly timeframe.
Current 86 Level Resistance
Currently we are at the same level on the RSI. We think it is very likely that next month BTC get's rejected and we enter a correction.
Swift moves to the upside for a long periods of time are a warning sign for any asset. If BTC doesn't have solid corrections we could have a shorter bull market then expected.
Will BTC just plough through the resistance because of the ETF's or is there any other scenario possible? There is an interesting correlation and there are also key differences between the 2017 Bull Market Cycle and the current timeframe if we analyse the weekly and monthly timeframe.
Historic Cycle 2017
As BTC went through the previous resistance zones in 2017 the pattern was identical until phase 3. Back then there was heavy resistance and we had a correction to the highs of phase 2, before continuing higher.
Current Cycle 2024
In this current cycle we have not had a healthy correction to the highs of phase 2, instead prices continued to climb higher. The resistance zone for phase 3 in both cases was almost identical at around 40% under the previous All time High. As we approach the resistance of phase 4, are pricing continuing to climb higher?
Historic 86 Level Resistance
In 2017 we got rejected at phase 4 when the RSI reached the 86 Level on the Weekly timeframe.
Current 86 Level Resistance
Currently we are at the same level on the RSI. We think it is very likely that next month BTC get's rejected and we enter a correction.
Swift moves to the upside for a long periods of time are a warning sign for any asset. If BTC doesn't have solid corrections we could have a shorter bull market then expected.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.