Buy the dip?

"The Formation of a Bump and Run Reversal Pattern in Bitcoin!"

This is an incredibly bullish sign, with a 60% success rate of breaking to the upside, if the neckline is held. In the past, Bitcoin has exhibited this pattern multiple times. For example, in 2019, it formed a textbook bump and run after a 14.5% pullback following capitulation. Currently, Bitcoin has only pulled back 10%, if Bitcoin pulls back 14.5% it puts at 20500 level,which is a important level to remember. In 2015, another bump and run was formed after a similar pullback.

Taking a closer look at the daily RSI of Bitcoin, there is a noteworthy pattern to observe. Over the course of its 4500-day history, the 89 level on the RSI has only been hit 20 times. On January 14th, 2022, this level was hit, which is an uncommon occurrence. Every time this level is reached, it indicates that Bitcoin is either in a bull market, at a major top, or has just come out of a capitulation. The red dashed line represents cycle bottoms, and the green dashed line marks the first hit of the RSI level following a cycle low.
2011

2015

2019

2023 (Present day)

Examining each cycle in detail, we can see that every time there is a capitulation, Bitcoin experiences a massive move on the RSI, followed by a bump and run reversal. The main chart above shows the 20500 target. It is possible that there may be a quick dip to 20500 while keeping the bump and run reversal pattern intact.

The 20500 level is important due to the presence of a CME gap, which sits right on top of the 21 weekly moving average. This moving average is one of the most significant in Bitcoin's history and has been a key factor in preceding major rallies. Before each rally, Bitcoin tends to drop down to the 21 weekly, testing it as support, before starting its move, just as it did in 2020.

The Mayer multiple band is also at 20500.

In conclusion, for the pattern to remain valid, the price must hold 20500, close the CME gap, and hold the 21 weekly, which serves as the neckline of the bump and run reversal. If a weekly candle closes below 20500, it will render this technical analysis invalid.

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Bullish divergence on the 4hour

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Since 2019, the 12-hour(RSI) has reached this level on nine occasions. Of these nine instances, three resulted in further lows, while the other four saw significant rebounds with an average increase of 43%,that would take Bitcoin to an 31k.

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If we get a mirror fractal playing out ,we go straight to 31k

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When Bitcoin enters a bubble thats when you will FOMO , thats when you will let your guard down and trust bitcoin again and by then it will be to late , expect the local top to be in 50-60days after entering a bubble , bubble will start at around 30k