Why Bitcoin Dips Before Moving Higher

14 Oct 2026 · 1 min

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In this segment, the speaker outlines a two‑step trading approach for Bitcoin. First, he notes a common price‑action pattern: in trending markets a bullish candle close usually precedes another bullish candle, while a bearish close often leads to another bearish candle. Second, he introduces the "Power of 3" framework, which leverages a bullish bias across three timeframes (e.g., weekly, daily, hourly). When such a bias exists, any price dip below the open of the current candle is treated as a low‑risk entry point to buy, with the expectation of selling higher as the trend continues. The speaker emphasizes that applying this method consistently helps anticipate weekly moves and improve trade consistency.

Chapters

Here's a bit of alpha for you. Whenever you see a bullish candle close, you typically anticipate the next candle to also be bullish. On the flip side of the equation, if you see a bearish candle close, you tend to expect the next candle to be bearish in nature. Now, this period right here and this period right here is a bit of a choppy period. This is not the usual type of scenario that I'm talking about, but when the market is trending and you get a bullish candle close, usually the next candle tends to follow suit. Now, understanding this information is just step 1. Now, step 2 is you need to put in this concept that's known as the Power of 3. The Power of 3 essentially just means that if you have a bullish, you know, bias— for example, could be weekly, could be daily, could be hourly— as long as you have a bullish bias for this next candle, anytime price actually dips below the candle open is going to give you an opportunity to basically buy low and then potentially sell high later on. This is one of the concepts that I've used over time to just be incredibly consistent in kind of understanding like how the weekly move is going to play out.