Why Bitcoin Dips Before Moving Higher

14 Oct 2026 · 1 min

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In this segment of the YouTube video "Why Bitcoin Dips Before Moving Higher," The Art Of Crypto explains a basic candle‑pattern expectation—after a bullish (or bearish) candle closes, the next candle often continues in the same direction during trending markets. He notes that this rule can break down during choppy periods. Building on that, he introduces the "Power of 3" concept: when a trader holds a bullish bias across multiple timeframes (weekly, daily, hourly), any dip below the open of the next candle presents a buying opportunity, aiming to capture the larger weekly move. The explanation is framed as a step‑by‑step method to achieve consistent trade entries by leveraging candle dynamics and multi‑timeframe bias.

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.