Feb 2024 set up repeating? Bitcoin has been moving in the range bound for a few months now. The market is very volatile and many inexperienced traders are liquidated. Some are starting to talk about the end of the bull market, but I can see a very bullish price set up in the weekly chart.
The current set up in the weekly chart is very similar to that in Jan/Feb 2024 (see the blue boxes and vertical lines in the chart).
1) The price is still closing above EMA 21.
2)MACD momentum is weakening and MACD lines about touching but haven't crossed to the downside. Also MACD is clearly in the bull zone.
3) RSI has reached the overbought territory and the purple line (signal line?) has come down, but the slope of the orange line (signal line or slow MACD line? sorry I forgot what it is called!) is still up. As I said in the previous analysis, RSI orange line tends to remove the market noises and shows the general direction of the price.
4)Stochastic is moving to the downside, however, they are still in the bull zone and it is the fastest reacting momentum indicator, so the direction can shift quite quickly.
If the price action of the Feb 2024 repeats, a parabolic leg up is coming soon. It is not a guaranteed move, so you need to respond accordingly to the price action of today, not that of Feb 2024!
If a daily candle decisively moves and closes above $98,000 area and 4H MACD crosses to the upside and enters the bull zone, it might be a good opportunity to buy spot or open a long position for swing trade (with low leverage!)
