Time is price and price is time. Bitcoin wave up is in Q2 2022.
Through my trading career I've noticed that ratios play a big role you can find patterns that repeat overtime. Whether it's Fib levels, time ratio, fractals - I am always in the hunt for a pattern that repeats.
I find post 2019 PA different to what was before and for that reason I will focus on data from this cycle as opposed to previous ones.
Legend:
Green Box = Impulsive wave to the upside
Yellow Box = Bullish consolidation/Accumulation
Red Box = Corrective wave/unlike Yellow Box, we have a change in market structure scoring lower lows and lower highs
White Box = Combined Time Spent (Impulsive wave up + Correction wave)
Essentially, in this chart my thesis is that each wave up has a corrective move/bullish consolidation wave. They both form a White Box, which is the combined time spent of both waves. We find that another wave up is needed when the days spent in the green box are at 0.236 Ratio of days spent overall.
Example: Apr-Jun 2019 - Green Box (Impulse up) = 85 days, Red Box(corrective wave) = 261 days or 346 days all together. Time spent in the Green Box is 85 / 346 or very close to the 0.236 Fibonacci level. We can find the same pattern repeat between March - Oct 2020 and with the current market structure.
Yellow box, unlike the Red Box does NOT have a change in market structure, e.g. lower lows and lower highs. It's a period of lower volatility (cooling off), when price takes time to recover before another leg up. This is actually bullish as nothing can move forever to the upside.
As stated in my previous ideas, I believe we are consolidating before a final blow off top starting from Q2 2022.
I find post 2019 PA different to what was before and for that reason I will focus on data from this cycle as opposed to previous ones.
Legend:
Green Box = Impulsive wave to the upside
Yellow Box = Bullish consolidation/Accumulation
Red Box = Corrective wave/unlike Yellow Box, we have a change in market structure scoring lower lows and lower highs
White Box = Combined Time Spent (Impulsive wave up + Correction wave)
Essentially, in this chart my thesis is that each wave up has a corrective move/bullish consolidation wave. They both form a White Box, which is the combined time spent of both waves. We find that another wave up is needed when the days spent in the green box are at 0.236 Ratio of days spent overall.
Example: Apr-Jun 2019 - Green Box (Impulse up) = 85 days, Red Box(corrective wave) = 261 days or 346 days all together. Time spent in the Green Box is 85 / 346 or very close to the 0.236 Fibonacci level. We can find the same pattern repeat between March - Oct 2020 and with the current market structure.
Yellow box, unlike the Red Box does NOT have a change in market structure, e.g. lower lows and lower highs. It's a period of lower volatility (cooling off), when price takes time to recover before another leg up. This is actually bullish as nothing can move forever to the upside.
As stated in my previous ideas, I believe we are consolidating before a final blow off top starting from Q2 2022.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.