RSI and MACD Averages
This chart is on a daily basis, and when we look at it, many aspects seem positive, giving an impression of reversal signals. Additionally, the break of the descending triangle suggests a possible upward movement. However, when we look at the weekly chart, there is no profile that would support such an upward movement. Yes, BTC might push upwards for a few days, but the weekly chart will always provide the most accurate insights for the long term.
Weekly Chart
This is a weekly chart, and to help you better understand it, I've annotated the image with descriptions. Looking at this chart, it's clear that BTC is setting up for a pullback and is poised for a decline. In fact, BTC has already pulled back significantly.
Monthly Chart
When we look at the monthly chart, we see the same structure as on the weekly chart, indicating a strong potential for a pullback. Don't let these charts worry you. For long-term investors, this isn't scary; in fact, it’s a good thing. It means we might have plenty of time to seize great buying opportunities again.
Faytterro Bands Indicator
When you look at the chart alongside the Faytterro Bands indicator, you can actually understand many things. In this chart, whenever BTC touches the red upper line, it invariably experiences a pullback, typically exceeding 30%. Looking closely at BTC's history on this chart, we can see that this pattern is how the 2020 bull run began.
The 2020 Bull Run:
During this bull run, BTC again touched Faytterro's upper red line and experienced a sharp pullback. Following this, the green line rose slightly, and upon touching it, BTC began its crazy ascent. Of course, I don't believe we'll experience such rapid declines or a complete collapse like during the 2020 crisis. For BTC, I actually anticipate a gradual decline, during which time the green line of Faytterro Bands will likely rise. A slow decline for BTC, which is highly volatile, would actually benefit exchanges. This is because I don't think the fuse can be lit for BTC until a substantial amount is taken from the hands of investors who have entered and stubbornly hold their positions or from uninformed investors.
Cup and Handle Formation
To be honest, you can see that many major coins like BTC have risen with this formation. Exactly a year ago, I had a post around 30K and if I can find it, I'll pin the link. In that post, I mentioned a big cup and handle, and it turned out to be spot on. This cup and handle won't happen the same way right now, because I've actually made a speculative drawing on the 4-hour. Right now, BTC is poised for an uptick in the 12-hour and daily, so we might see BTC move back toward 67K. I think it could form a cup and handle by fluctuating and falling, and I've listed the things that support this idea above.
4-Hour Timeframe
When we look at the 4-hour timeframe, BTC appears poised to retest towards a zone where it could find buying interest for a rebound. From the 71,683 region, BTC had formed a descending triangle pattern and successfully broke above the descending white trend line that forms part of this pattern. After breaking out, it retraced for a retest and turned downwards. Currently, it may attempt another retest, with the retest level around 63,100. This level also coincides with a strong buyer area and the green line of the Faytterro Bands, suggesting an inevitable rebound.
The Deeper, the Better for the Bull
We know that the mega bull run hasn't arrived for BTC, and we've detailed why in previous analyses. With the completion of this formation, the bull run could truly begin. The deeper the cup and handle formation for BTC, the better the bull market we can expect. Based on my analysis on the 4-hour timeframe, the target for this cup and handle formation could be around 84,000. Additionally, when more investors become aware, certain developments can disrupt things. BTC could take off with news or something extra without forming this formation, leaving people behind, but frankly, I don't think this will happen frequently.
The Graph I Mentioned:
In the analysis of this graph, I mentioned again that the indicators are spot on and elaborated at length on why it would occur. You can read it by clicking here. (Since the text is in Turkish, it might not be easily understandable without translation, but I wanted to include it for those who are curious and might examine it.)
Thank you for reading the analysis up to this point. Please don't hesitate to show your support with likes and comments. You can also ask for analyses of the coins you're interested in either in the comments or in my Telegram chat channel. Wishing everyone abundant profits.
