Investors,
Well, that was interesting…
I had more fun during that precipitous capitulation to $107k, with Bitcoin falling by $15,600 in a single trading session, than during the recent run from $108k to $126k.
Did I predict this magnitude of a decline, this fast?
Of course not.
I was prepared for a dip into the $115k to $118k zone, which I outlined to premium members of Cubic Analytics on Tuesday morning, but I didn’t expect this…
And yet here we are.
Retesting the 200-day moving average cloud and the structural breakout zone.
So I took advantage of that capitulation, buying at precisely $108k, because the purpose of sound TA is to identify key structural levels and statistical indicators IN ADVANCE of significant moves, so that we can execute on objective opportunities.
And this was an opportunity, as far as I’m concerned.
Maybe prices fall further from here.
Similar to the consolidations that occurred in August-September 2023, July - September 2024, and February - April 2025, it would be completely normal for a brief decline below the 200-day MA cloud before a reclaim and trend continuation to new highs.
Then consider this…
This downward move occurred after the production of higher highs.
And now we have the opportunity to produce a higher low, at least on a closing basis:
If uptrends are just the production of higher highs & higher lows, then nothing about this consolidation has invalidated the uptrend.
While we must accept that bearish things can happen during uptrends, as this past week proved, it’s also vital to accept that being bearish during an uptrend is a great way to lose money and/or underperform.
Oh, and one more thing…