Bitcoin's original bottoms rarely form in a single move.
They typically develop in three stages.
Stage 1:
TheCrash.
Momentum turns sharply negative as selling pressure intensifies.
Stage 2:
BaseFormation.
The price stabilizes, but momentum remains weak, and the Bitcoin Impulse Index (BPI) becomes neutral.
Selling pressure is still being absorbed.
Stage 3:
TheRecovery.
The BPI turns positive first, followed by a recovery in price momentum.
Only then does a sustained uptrend begin to emerge.
Where are we today?
Bitcoin has likely passed the initial crash.
However, we are still in the base formation stage.
The price has stabilized, yet momentum remains strongly negative, and the BPI has just returned to neutral.
But this shift takes time.
The first indicator will be whether the price momentum can break out of its severely negative state.
#Binance
They typically develop in three stages.
Stage 1:
TheCrash.
Momentum turns sharply negative as selling pressure intensifies.
Stage 2:
BaseFormation.
The price stabilizes, but momentum remains weak, and the Bitcoin Impulse Index (BPI) becomes neutral.
Selling pressure is still being absorbed.
Stage 3:
TheRecovery.
The BPI turns positive first, followed by a recovery in price momentum.
Only then does a sustained uptrend begin to emerge.
Where are we today?
Bitcoin has likely passed the initial crash.
However, we are still in the base formation stage.
The price has stabilized, yet momentum remains strongly negative, and the BPI has just returned to neutral.
But this shift takes time.
The first indicator will be whether the price momentum can break out of its severely negative state.
#Binance