Bitcoin Review As The Price Soars

Published 10/27/2019, 01:58 AM
Updated 07/09/2023, 06:31 AM

Those that view the message of the market on daily basis are likely confused by trading noise. While trading noise contributes to the long-term trends, it does not define them. Human behavior tries to explain trading noise as a meaningful trend. This confuses the majority which, in turn, contributes to their role as bagholders of trend transitions.

Bitcoin's jump above 8,000 should be sparking a debate about whether consolidation has ended. The social media conversation, unfortunately, is heavy on bullish cheerleading and light on trading discipline, so be wary about near term interpretations. One day does not make a trend.

The primary trend is defined by the alignment of price and volume in the monthly time frame. The primary trend has been aligned up for 6 months (Monthly BuT). While this alignment has produced a loss of 7% (so far), it defines Bitcoin's LONG core position. Upside alignment = long. Bitcoin was due for a rally because the daily downside alignment (still in place) was 52 weeks old. BrT = 52. The BrST, or daily cycle reading of 52 weeks, is 3.28. That's over 3 standard deviations above the normal cycle reading. In other words, Bitcoin was due for daily reset. Will the daily reset translate into Triple UP? The bullish cheerleaders will most certainly say YES, but only future alignment and energy can properly answer that question.

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