How history hypes predict future price movement!Sometimes I ask myself why am I producing all this educational material on TW since it gets much fewer views than trade ideas themselves.
Usually, the answer is because I want to give something back. I want to teach the ones that want to learn how to catch a fish, not only get a fish.
Nikola Tesla said that we should check number 3, 6 and 9 and we would know much more about the World itself.
Let's check what number 3 tells about crypto markets.
Do you see 3 tops on all 4 graphs where the next one is lower than the previous one?
- 1st one is local hype top (peak)
- 2nd one is a local dead cat (where people still think run will go on)
- 3rd one is usually the last one (where weak players lose hands)
When that happens it's time for FUD to go away and recovery comes in place.
However, nothing can go exponential until the end. It has to stop to get some fuel for the next local hype.
That's consolidation before the next push. It can build up sideways also, but usually, it already has some upwards movement.
Some are faster like 135days or 185days to the next top in 2016 or 55-56days in 2017 when we are already deeper in the next bubble cycle.
Where are we today?
Is it consolidation or is it 3rd local top?
What do you think!?!
Give some opinions in the comments below and I will write down where I think we are. With approximately 90% probability! ;)
Enjoy your trades and don't forget that it's just an idea and not investment advice!
