Bitcoin | 3 Line Break (Top vs Bitcoin: Bullish vs Bearish)
2024-09-28

In a previous trade-idea, I made several references regarding the conditions that need to be met so that the market can be considered bullish again. Since Bitcoin has been dropping for more than six months yet it continues to trade at a relatively high price, we tend to get confused.

When looking at the candlestick charts, we can see a clear trend of lower highs and lower lows, and this we consider bearish.

In order for the Bitcoin bulls to gain the upper hand again, to turn the chart green, it is necessary for certain conditions to be met, these goes as follows:

1) A major drop pushes the market toward oversold conditions.
2) A major rise pushes the market into bullish territory.

For Bitcoin to enter bullish territory it needs to close weekly/monthly above $71,000, minimum. This 3-Line-Break chart shows clearly what I mean. Any trading below this level and we consider the potential to be bearish. That is, the next major move will develop toward the downside rather than upside.
 
This chart is also very interesting because it reveals clearly the dynamics of tops vs bottoms, bullish waves vs bearish waves.

We grow from the bottom up. From bottom prices, new bullish action develops.
Corrections happen from the top. When prices are high, bearish action develops.

This chart clearly shows Bitcoin near a "top," trading at a very high price and ready to start a new down-move.

Thank you for reading.

Namaste.