As of March 9th 2006, the Bitcoin Gaussian channel chart has switched from bull market (green) to bear market (red).
Below is a current snapshot of the Bitcoin 1-week chart using the Gaussian channel indicator. This chart shows the history all the way back to 2014.
Gaussian Channel Information
In bull markets, we usually stay above the Gaussian channel. In bear markets, we usually stay below. Once you drop into the Gaussian channel, it’s like standing in quicksand. It’s hard to get out once you’re in. The Gaussian channel indicator is great at identifying trends.
Analysis
As the title of this article says, Bitcoin’s Gaussian channel chart definitely has me screaming the bear market blues.
Looking at the Chart Above to the Right
In the last few weeks, we retested the bottom of the Gaussian channel and got rejected. We’re definitely still in a downtrend. My eyes are on September to October. The only way to break the current downtrend is for Bitcoin to break through 98k. I just do not see this happening with the current rally.
We usually stay in red for several months before carving out a bottom. The good news is that bear markets are where the bottoms are found.
Another Data Point
On average, summertime is not a great time for crypto. Put your seat belts on, be patient, and wait. That’s what I’m doing.