Bitcoin (BTCUSD) made a Low two days ago and today we are seeing a strong rebound on the biggest 1D candle (so far) since July 27. Based on the Cyclical Double-Bottom Effect, we can argue that this low is a hit on the Double Bottom zone of the June 18 market Bottom. What is that effect? Well it appears to be not just a Theory but a pragmatic phenomenon that has been seen on every Cycle bottom on Bitcoin's past three Cycles.
On this 1D chart, you can see the current Cycle on top of the previous ones for a more effective illustration of the Double-Bottom effect. The range of the Double-Bottom is the green zone. Cycle 1 is displayed with the black trend-line making the 2011 Double Bottom, Cycle 2 with the blue trend-line making the 2015 Double Bottom and Cycle 3 in the orange trend-line making the 2019 Double Bottom.
As it is shown, the Double Bottoms are fairly structured in the same way on each of the past Cycles and straight after each one was formed, a strong rally followed. The past cycles have been adapted in order to fit the Green Range, which is formulated by the current Cycle. Still, the bullish trend following each Double Bottom is obvious. This study isn't designed to show the time-length, but rather the bullish move that follows.
You can view each Double Bottom plotted on top of each other, with the current Cycle being the green trend-line, in the chart below:
So what do you think? Has the market double bottomed and if so, based on the above, are we about to witness a strong multi-month rally as the new Bull Cycle is starting? Feel free to share your work and let me know in the comments section below!
bought the low 2 days ago , hnt ,op and bake booked 80% profit can come down near bottom again: also if u missed buying Anything dont FOMO: btc price will remain below 26k next 6 months u will get many chances so Chill and Enjoy
Wrong as usual doing only bullish charts during a bearmarket is really nonsense
louistran_016
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@BizzarTrading, care to show us your chart and short position to prove that conviction?
SDlektric
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@louistran_016, Look at the world and not just charts. It's too early for any kind of rally
cicatrace
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@SDlektric, Markets are forward thinking mechanisms. If you wait for rallies you miss 50% of it.
BizzarTrading
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@louistran_016 listen man, it's not about showing something to you, I think no need super intelligence to realize that we are in a bearmarket + worse global macro economy, so don't comment as a child and open your eyes and use your brain. Goodluck
louistran_016
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@BizzarTrading, my comment is not to taunt you or anything. In trading only people with skin in the game matters, a 10 thousand word essay has 0 value if you don't have conviction to put money behind the belief / analysis yes the world is going into a recession and possibly a prolonged financial crisis, but not right here right now. And the chart looks at possible outcome 6 months into the future, not what CNBC feeding the audience daily