Here is what happened when the market dipped last week and everyone started panic selling their bags. Most retail traders end up buying the absolute top because they wait for green candles, only to watch the market reverse the moment they click buy. It is incredibly frustrating to sit on the sidelines, trying to guess if we have actually hit the floor or if there is another leg down.
When we look at how $BTC is forming its current bottom, it looks remarkably similar to the double-bottom structure we saw back in mid-2021. Back then, price swept the lows twice, trapping early shorters before aggressively reversing. We are seeing the same accumulation pattern play out now, where liquidity is grabbed just below key support levels before a steady grind upward.
If you compare this to how $ETH handles its market cycles, Ethereum tends to lag behind but recovers with higher beta. During the last cycle transition, once Bitcoin confirmed its bottoming structure by holding the 200-day moving average, capital quickly rotated, leading to a massive rally in altcoins. Understanding these structural shifts is the difference between catching the macro trend and getting chopped up in the range.
Where do you think we head from here?
#Bitcoin #CryptoMarket #TechnicalAnalysis