BTC's Downtrend Time-frame 3 days

Many crypto enthusiasts have called for a bottom at the various lows in the BTC's downtrend over the past year. At each of the major lows, eager dip buyers swooped in and tried to pick a market bottom. The major swing lows in this bear market in BTC have occurred in December 2021, January 2022, February 2022, May 2022, and June 2022. Each low likely was considered as the bottom (a final low) by investors who pounced in to buy or averaged down on already losing positions.

Some savvy traders may have identified extreme oversold conditions in crypto markets at each of these lows and traded a 5-20 day rally to make a tidy profit, and such short-term traders are beneficiaries of the sharp bear rallies that have occurred. More patient short sellers have also benefited from the bounces if they waited until overbought conditions materialized to position bearishly.

The linear regression channel shown on the Primary Chart shows how each interim bear-market low has been followed by a rally back to the top of the regression channel. Once there, investors who had hoped the trend had reversed of the most recent lows were once again disappointed.

How many more lows will disappoint the long-term bulls? No one knows. But the odds are stacked heavily against dip buyers for anything more than short-term rallies from extremely oversold lows at downtrend support.