On today’s livestream, Jesse covered the 2-week chart for bitcoin.

It is ULTRA bullish. The Sharp Shooter Indicator highlights ultra-bullish candles with the bright orange color, like it’s on fire 🔥🔥🔥 

And bitcoin’s been on-fire for 10 two-week candles in a row. That’s 20-weeks!

There’s a bunch we can learn from the 2-week chart, so let’s dig in!

1. Bitcoin has consolidated at prior cycle peaks in the past

With bitcoin pulling back here, it’s easy to wonder if the top is in. Is this as high as bitcoin will go this cycle?

We can never know for sure, but we can look to history as a guide.

At both previous peaks in 2017 and 2013, bitcoin consolidated and then shot up another 200%+

2017 Peak

When bitcoin hit the 2017 peak again in 2020, we can see it consolidated briefly—only a 2 to 4 week period. We call it consolidation because the body of the candle (open and close) are quite small compared to the candles around it.

The lowest point was an 18% pullback from the previous peak.

Then after the consolidation, it shot up another 235% above the peak!

2013 Peak

When bitcoin reached the 2013 peak in 2017, price consolidated for another 8 candles (16 weeks) before shooting up another 1,500%!

We can see this consolidation because price is going above and below the 2013 peak. The lowest point in the pullback was -35% from the 2013 peak.

Consolidation Takeaways:

• We only have two historical datapoints, but in both cases bitcoin continued to the upside after consolidating at the peak.

• Pullbacks ranged from 18% to 35%, and we’ve already seen a 12% pullback from the previous peak.

• The gains after breaking the peak ranged from 235% to 1,500%

• The pullback could be shallower this time (but also the gain after breakout could be less) as bitcoin’s volatility decreases over the cycles. We will see!

2. Previous candle closes ~$59K can act as support.

In 2021, we had 8 two-week candles that either opened or closed at the $59K level.

Now that price has surpassed the $59K level, we’d expect that to act as strong support. It makes it more likely that we won’t get a 2-week candle close below $59K.

This also might be an area we look toward in 2027 to mark a bear market low (though that’s getting way ahead of ourselves).

3. The trending dots started to accelerate up after the 2017 peak

We can see how much momentum price got after the peak by looking at the trending dots on the Sharp Shooter Indicator.

4. RSI trendline could be an exit signal

A trendline break on the 2-week Sharp Shooter RSI chart could be another signal that it’s time to exit the market before the next bear market.

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Disclaimer

The contents of this newsletter are expressed in my opinion only, none of which is financial advice. Always do your own research as this information is intended for educational & entertainment purposes only.