- November 16, 2022
- Posted by: Tradingshot Articles
- Category: Cryptocurrency
Bitcoin (BTCUSD) on the 1W time-frame is flashing some bottom signals we can’t ignore. The core of this post is the Bollinger Bands Width (BBW) indicator which rebounded on a level (blue line) that has historically preceded major rallies and market bottoms (circles).
The period that bears more resemblance with today is the BBW rebound that started on the week (1W candle) of November 12 2018. This was a strong red week, which was immediately followed by another, even stronger one. The bottom was made three weeks after on the Higher Lows trend-line (dashed) that was almost half the angle (16°) of the previous one (30°). If this is any pattern to follow, then the bottom of the current Cycle could be made on a 8° angle Higher Lows trend-line. All those lines start on the last major low before each Cycle Top. Keep in mind that depending on your screen’s dimensions, the angles can change but they do so proportionally, so the analogy remains. In any case, on the current weekly candle, the Higher Lows trend-line has a downside limit (Support) around $14000. The more the price doesn’t drop, the higher this level gets.
Is the bottom close?
Feel free to let me know in the comments section below!