IOTA Stochastic Turns Bullish. Is it a Bull Run or Bull Trap?
IOTA’s (MIOTA) weekly stochastic flipped bullish for the first time since August 2021. The bullish stochastic crossover and the above-20 reading may be positive for the cryptocurrency, but there is a hidden alerting pattern that may hint at a bull trap.
IOTA Stochastic Indicator
A stochastic crossover signal emerged on the IOTA weekly chart. However, the bullish momentum is not confirming the bullish crossover signal. The cryptocurrency price has witnessed range-bound activity in the last 5 months.
Because the IOTA price is trapped in a consolidation phase, there is a higher probability that the stochastic crossover signal is a bull trap.
2018 Bear Market Comparison
If we compare the current bearish market with the 2018 bear market, we can see some striking similarities. The current bear market started after the previous bull run peaked in April 2021. Similarly to the 2018 bear market, we had a bear market rally that peaked precisely 20 weeks after the first peak.
After the market peaked in April 2018 and August 2021, the market slowly drifted lower, breaking to new lows before entering into a long-term consolidation mode.
If we’re going to experience the same type of pattern, then we can expect the current consolidation to last 111 weeks. This potentially means that we will consolidate until the next Bitcoin halving event scheduled on May 2024.
IOTA Stochastic Indicator
A stochastic crossover signal emerged on the IOTA weekly chart. However, the bullish momentum is not confirming the bullish crossover signal. The cryptocurrency price has witnessed range-bound activity in the last 5 months.
Because the IOTA price is trapped in a consolidation phase, there is a higher probability that the stochastic crossover signal is a bull trap.
2018 Bear Market Comparison
If we compare the current bearish market with the 2018 bear market, we can see some striking similarities. The current bear market started after the previous bull run peaked in April 2021. Similarly to the 2018 bear market, we had a bear market rally that peaked precisely 20 weeks after the first peak.
After the market peaked in April 2018 and August 2021, the market slowly drifted lower, breaking to new lows before entering into a long-term consolidation mode.
If we’re going to experience the same type of pattern, then we can expect the current consolidation to last 111 weeks. This potentially means that we will consolidate until the next Bitcoin halving event scheduled on May 2024.