The Rule of Bull Market Cycles: Small Fluctuations Will Ultimately 'Submit' to the Larger Trend
There is a harsh truth in the market: 90% of short-term fluctuations will eventually be absorbed by larger cycles. Currently, Bitcoin's weekly chart has broken through previous highs, and the monthly chart shows a stepped upward structure. Once a trend of this magnitude is formed, it typically takes several months to build a top. Short-term daily fluctuations (such as the recent sideways consolidation) are essentially a process of accumulating upward momentum for the larger cycle.
To understand this in simpler terms: When the MACD at the weekly level continues to show a golden cross, and the RSI at the monthly level has not reached the overbought threshold, any pullback at the daily level is unlikely to evolve into a trend reversal.
