This chart is a relative strength chart of BTC/SPX beginning at the inception of BTC. There are some very interesting relationships here and multi year trend lines that have mapped out what I am calling the last 3 bull markets.
1. The value zone is denoted by the purple rectangle. Whenever the price for bitcoin is in this region, it is an accumulation phase before the larger bull run.
2. The fib channel provides the end of the bull run blow off top for all of the previous bull runs. These can act as exit points after the major bull run.
*Note*
This idea relies on the fact that the BTC/SPX ratio has already hit its lows. This does not mean that BTC itself cannot hit new lows. For example, if the relative strength was at 2 and the SPX is at 1500, then BTC would be at 3000. Anything above 1.65 does not break the higher high trajectory.
If this ratio breaks to new lows, a new fib channel will have to be estimated.
1. The value zone is denoted by the purple rectangle. Whenever the price for bitcoin is in this region, it is an accumulation phase before the larger bull run.
2. The fib channel provides the end of the bull run blow off top for all of the previous bull runs. These can act as exit points after the major bull run.
*Note*
This idea relies on the fact that the BTC/SPX ratio has already hit its lows. This does not mean that BTC itself cannot hit new lows. For example, if the relative strength was at 2 and the SPX is at 1500, then BTC would be at 3000. Anything above 1.65 does not break the higher high trajectory.
If this ratio breaks to new lows, a new fib channel will have to be estimated.