Polarity Shift
Bitcoin seems ready to move, and there is a notable polarity shift across price, onchain, and derivatives markets. Cheers, chopsolidation, ye' will be missed.
‘Reversals start from the inside out’ — Doc Severson
G’day Folks,
The concept of time-frames is such an important one to master in markets, as it allows us to hold competing opinions at the same time. We can be bullish on Bitcoin the long-term, but tactically bearish in the short-term.
Doc’s opening quote is one that I refer back to often, as it helps me assign the correct data-points to the correct time-frame of my analysis.
For the last 5-months, Check the Analyst’s core view has been that Bitcoin has been trading within a weekly scale correction to a monthly scale uptrend.
When Check the HODLer hears this assessment, his strategy is to be patient, wait, and be ready to stack sats at a discount whenever the market offers it. However, at some stage, that weekly downtrend is likely start reversing back into the direction of the macro monthly uptrend. It may not, but my bias is that it will, eventually.
This reversal will start on the 1 min chart…then propagate up to the 1hr chart…and then the daily…then the weekly…
With Bitcoin now at $65k, it is working its way through the resistance zone of the Short-Term Holder cost basis, and the 200DMA, we may be on the cusp of a real reversal.
In today’s post, I will examine if this rally has what it takes to trigger a weekly scale polarity shift back into an uptrend, and if we can finally say ‘Cheers to Chopsolidation’…and close this chapter.
📈 Reminder: you can find the charts from our articles on the Checkonchain Charting Website, and a guide in our Charts Tutorial Video.
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