Since we’re nearly halfway through the 2nd quarter of 2023, let’s look at $BTC on a quarterly chart. 👁️
Note: I’ve removed all components of the Ichimoku Kinko Hyo system except for the Tenkan-Sen.
Firstly, we’ll examine the gap, indicated by the grey blob, between the bodies of the candlesticks and the Tenkan-Sen on Bitcoin’s quarterly chart.
Typically, such gaps tend to close within three to four candles, although it can sometimes take longer. This suggests a growing likelihood that Bitcoin will interact with the Tenkan-Sen.
Secondly, observe the striking resemblances between the current chart structure and the past structure. 🔭
Lastly, our focus shifts to the relationship between the Composite Index and the Relative Strength Index (RSI) in the context of Bitcoin’s candlestick chart.
The quarterly chart shows hidden bullish divergence, indicating that the current downward movement is likely to end and the overall uptrend will continue.
The RSI found support at the 50 level, which is a positive sign in a bull market, and the Composite Index is stabilizing after reaching lows not seen since Q2 2016.
On the bearish side, a quarterly candlestick closing at or below $16,500 would confirm a new and extended bear market. 🐻