BTCUSD Bullish Divergences 3D Stoch RSI, ROC, MFI

31 mai 2021

This is a relatively simple chart. Notice how subsequent the 2017 bull market peak the Stoch RSI, ROC and MFI did not bottom until the price tanked massively from it's ATH.

Notice the areas circled in red. In both these situations the Stoch RSI, ROC and MFI peaked around a certain price range; the price continued to rise while the indicators began to recede until the price trailed off to drop back to this same price while the Stoch RSI, ROC and MFI bottomed to zero. This is the definition of a bullish divergence. We have the same exact price range as back in Jan 2021; except now the Stoch RSI, ROC and MFI are all near zero as opposed to near 100. And this mirrors the situation mid bull run 2017 after which, as bullish divergences are meant to signal, a massive run up in price followed.

Notice the green line; this furthermore suggests that the price range of the peak we just experienced may be the bottom of the bear market in coming years once the bull market recedes subsequent the buying climax which has not yet occurred.

1 juin 2021

Note

To further clarify; at the peak of the 2017 and 2013 bull markets the 3Day Stoch RSI, ROC and MFI peaked together and then crashed together both times. This defines the "blow off the top."

In both those bull markets the run up to this peak experienced a prolonged pullback defined by a bearish divergence on the 3Day RSI, ROC, MFI in which the price continued rising while the indicators kept falling. This eventually culminated in a substantial pullback which ended in the above described bullish divergence, at which point the price consolidated and raced to higher highs.

Notice how the situation currently is mirroring those mid bull market pullbacks in both 2013 and 2017.