Bitcoin's overall trend, revealed by trends of price, leverage, and time, are defined and discussed in The Matrix for subscribers.
Trading desks will be flooded with TA discussions about Bitcoin this weekend. That’s how it works. Experts will rush to explain unexpected rallies or declines through static TA patterns and hindsight interpretations. These discussions, most certain to include interpretations of potential topping or basing patterns, are likely to focus on the daily trend.
The composite trend, however, represents an infinite number of fractal trends that cannot be distilled into TA patterns with marginal forecasting abilities within the daily trend. The composite trend must be studied simultaneously across multiple time frames. The Evolution of the Trade focuses on three: (1) tertiary (daily), (2) secondary (weekly), and (3) primary (monthly) in its most basic form.
Bitcoin’s core long position is held as long the primary trend is up. The primary trend has been up for 8 months and produced a 237% return. Until the primary trend displays price or time cycle extensions, or flips down, the core long position is held. Let the majority chase their tails with every hiccup in the primary trend. Hiccups or countertrend moves within the primary trend are extremely common; they happen in every market!
Professional and highly-disciplined traders recognize these hiccups as cause building - transitions of or opportunities within the primary trend. The latest decline in Bitcoin will most likely be characterized as cause building by early next week.
Will pros view it as a transition against the long core position, or an opportunity within it?
That question can only be answered by cycles of price and time and the flow of Energy defined in the Matrix.
The flow of energy will define whether the recent decline represents accumulation or distribution. Accumulation favors continuation of the primary trend which is currently up. The later suggests a growing transition against it.
Very few traders understand energy and the role it plays within the ebb and flow of the primary trend. The primary trend is alive. It breathes with regular cycles. Reactions against primary up trends, for example, cause down impulses in the daily and weekly impulses. These impulses are fueled by bearish energy builds against the primary trend. The study of energy places a critical role in defining the various phases of the Evolution of the Trade.
Bitcoin is a market highly influenced by a bullish narrative that omits the study of cycles and energy. This means the majority of Bitcoin traders will be punished at some point. Every rally and decline ends. Pain usually accompanies them, because the majority, so heavily influenced by narratives, cannot see the cycles and energy builds the form against them.
All traders will learn the lesson of cycles and energy. These lessons often come through pain. Pain can be reduced or eliminated by using the Matrix and following the Evolution of the Trade.
Subscribers know that everything about markets changes once they start learning the Matrix and the Evolution of the Trade. I can only show you the door, the choice to step through it is yours.
Subscribers interested in Bitcoin, please watch the latest Bitcoin Review posted this weekend. The real education of how trends breathe and struggle to gain or loss control of the primary trend has begun. Bitcoin has been a relatively easy trend for 8 months. Nothing is easy forever.
Follow me on Twitter or Facebook for further discussion.
Market-driven money flow, trend, and intermarket analysis is provided by an Access Key.