Stock Money Lizards share some exclusive charts with CryptosRus that point to the final phase of a “parabolic bull run” for Bitcoin.
Covered:
- Parabolic Bull Run: Macro Patterns Keep Repeating
- Potential Sideways Movement
Parabolic Bull Run: Macro Patterns Keep Repeating
There’s been some recent criticism of historical charting thanks to some past predictions not working out, but that doesn’t mean history is necessarily going to stop rhyming. According to Stock Money Lizards, they think crypto is still on an AB/AB pattern.
“Macro patterns keep repeating. There are three major peaks indicating the final phase of the parabolic bull run,” crypto and stock analysts Stock Money Lizards said.
Mainly, Stock Money Lizards are looking at the Money Flow Index (MFI). It’s similar to the Relative Strength Index (RSI) in the fact that it tracks whether an asset is overbought or oversold, but where it differs is that it doesn’t track speed and change in price movements. Instead, it uses prices and volume.
In a sense, MFI tracks volume, and thus, it signals a floor in money flow. This is significant because volume tracks the interest level in trading an asset both ways.
“This beginning downtrend is confirmed by the bearish divergence seen in the Money flow Index which precedes the Bitcoin price downtrend. MFI is forming a descending wedge,” Stock Money Lizards said.
A descending wedge indicates a price fall is starting to plateau and signals potential bullish price momentum.
That paints a particularly rosy picture, however, that doesn’t mean a bullish reversal is imminent.
Potential Sideways Movement From Bitcoin Market
Nevertheless, it appears the Bitcoin and crypto market is still looking at some sideways action for some time to come.
“After 2011 – 2013, we saw this bearish divergence with the Money flow index between 2017 / 2019 and 2020 and 2022 as well. Bitcoin price has 3 „breakout attempts“ leading to three peaks. However, the money flow index begins decline with the first peak indicating the end of the parabolic phase,” Stock Money Lizards said putting the most recent Bitcoin dive into perspective.
“After the MFI has hit its low (and all time support) it appears another long bull phase is beginning. This could, however, mean that there will be some weeks of sideways movement before the actual leg up,” Stock Money Lizards added.
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For more of Stock Money Lizards, check out their official site and Twitter.
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