BitcoinLong
3-day ichi showing BTC's hand
Look - ANYTHING could happen from this point, because it's Bitcoin - but it's hard not to compare this huge consolidation period with the one we were in exactly 3 years ago (in late September 2016) at around the same point in the bull market (ie, towards the beginning, after the first run-up). If you look at what happened then, Bitcoin played "nice" by going sideways for a long time to let all the major/higher time-frame oscillators reset while allowing the 21 EMAs on these timeframes to catch up to the 10 SMAs. I'm illustrating this here via the 3-day ichi cloud but you will also see it if you look at any chart 3-day timeframe or higher chart and just with the 21 EMA and 10 SMA. Once the 21 EMA caught up to the 10 SMAs on these higher times, the next upward trend started (corresponding with touching the 3-day ichi cloud). Incidentally, this also corresponds with REKing the most people because everyone is waiting for mid or low 8k to buy. If it suddenly springs from this area -- although of course it won't be sudden it will take a few weeks to get started and "show its hand" -- once everyone realizes what's going on, that we are indeed not going to 8K and now starting back up from here, we'll already be a good 1K or 1.5K into the new trend, forcing people into a FOMO situation and providing tons of liquidity for the whales, exchanges, and market makers to do their thing and punish the latecomers. And of course, if there's one absolute rule in trading it's that 90% of traders lose, so you should always side with the trend that is going to REK the most people.
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.