Why Bitcoin Dips Before Moving Higher

14 Oct 2026 · 1 min

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In this video, The Art of Crypto explains a simple yet effective trading mindset for trending markets. He first notes that in a clear trend, a bullish candle close is usually followed by another bullish candle, and a bearish close tends to be followed by another bearish candle. Building on that observation, he introduces his "Power of 3" framework: maintain a bullish bias across any timeframe (weekly, daily, hourly) and treat any price dip below the open of the most recent candle as a buying opportunity. By entering on these dips, a trader can capture the larger weekly move while staying aligned with the prevailing trend. The commentary emphasizes that this approach has helped him achieve consistent results in identifying and riding weekly price swings.

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.