We have 3 very important time frames to judge when we're looking at the trend and here is where Bitcoin falls in with those 3 key times frames:
NEAR TERM TIME FRAME: hours to days of trend/dat → BEARISH
INTERMEDIATE TERM FRAME: days to weeks → NEUTRAL
PRIMARY TERM TIME FRAME: weeks to months → BULLISH
Right now Bitcoin is bearish on the nearterm time frame, neutral on the intermediate term, but still deemed bullish on the primary term trend. Until proven otherwise, the benefit of the doubt continues to go to the buyers of this market and Bitcoin in particular. The primary term trend doesn't change from bullish to bearish overnight. It's something that happens in a series of weeks of trading behavior. We would need to see a complete break of the primary term trend. And even a breakdown of the primary term trend doesn't mean that a confirmed uptrend would be dead....that trend itself would fight like hell to resume it's upside. Very strong trends that inevitably break almost always will be FOLLOWED BY A RETEST OF THE BREAKDOWN THAT FALLS SHORT. We are nowhere near there at the moment. Again, until proven otherwise, Bitcoin is till in a confirmed uptrend on the alarger trend, and this pullback would be bought. What we'll be watching for is how Bitcoin deals with the bounce.
Bitcoin has obviously negated the double-bottom setup that was outlined last week. What's more likely at this point is for Bitcoin to retest the $10,500 area and show us a strong bounce off the last $10,500 low that occured back on December 22. What we should eventually see is a strong bounce that take Bitcoin up anywhere from 30% to 60% higher off the bottom of that next bounce.
We have been through 7 corrections so far since the beginning of 2017....this one is the most dramatic in terms of depth of pullback as it eclipsed the -41% correction in June of 2017 with this pullback being so far as deep as -47% from peak to trough. Notice our table on Bitcoin's historical Pullback Cycles below.
You'll notice we're now @ day 30 on this correction from the highs. The last correction that went this long bottomed on day 33 of it's cycle. So it's very likely we should see this flush start to reverse any day now. Be patient here. All of this will present extraordinary trades setups. We will be showcasing several of those tradesetups that are included in our Sleeping Giants report. What better time to buy those positions then when everything here is on a fire sale.
Members update coming with our Buy Alerts on those positions no later than tomorrow.