Today I'm bringing an interesting study of the BTC bottoming.
We'll zoom out to weekly chart to compare the potential bottoming of BTC through the perspective of NVT indicator.
If we draw the descending trendline that was broken after bottoming in 2015, we see that it was tagged twice and got rejected. And the bottom took place between these rejections.
At this point, we could measure how long it took to break the trendline since the NVT started to signal 'below value' (green colored line). It took 11 weeks (about 77 days).
Now, if we move to current price action, we can observe a similar pattern than in 2015: descending trendline rejecting the tests, and between these tags, we find the potential bottom at 3100 area.
This week we are approaching again the descending trendline. Apparently, there's not much strength in the test of it, and the odds are leaning to another rejection.
But if we look at the NVT, we see that we are in the 11th week after it started to signal 'below value'. Isn't it great?
I don't expect carbon-copy price action. But if current bottoming is meant to rhyme with 2015, then we have about 1-3 weeks left to break the actual trendline.
We'll zoom out to weekly chart to compare the potential bottoming of BTC through the perspective of NVT indicator.
If we draw the descending trendline that was broken after bottoming in 2015, we see that it was tagged twice and got rejected. And the bottom took place between these rejections.
At this point, we could measure how long it took to break the trendline since the NVT started to signal 'below value' (green colored line). It took 11 weeks (about 77 days).
Now, if we move to current price action, we can observe a similar pattern than in 2015: descending trendline rejecting the tests, and between these tags, we find the potential bottom at 3100 area.
This week we are approaching again the descending trendline. Apparently, there's not much strength in the test of it, and the odds are leaning to another rejection.
But if we look at the NVT, we see that we are in the 11th week after it started to signal 'below value'. Isn't it great?
I don't expect carbon-copy price action. But if current bottoming is meant to rhyme with 2015, then we have about 1-3 weeks left to break the actual trendline.
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In a previous idea, I mentioned that the break of that trendline could trigger the next leg down.
That daily picture could be read as supportive to the weekly scenario presented here. But BTC still needs to draw some market structure confirming the Bullish Divergence. Check it out!