in today's video we're going to focus on the price Discovery phases in the parabolic upside phase of the cycle because this green square right over here that represents a parabolic upside phase of the cycle and we're currently in it but this parabolic upside phase consists of price Discovery uptrends in green and price Discovery Corrections in red and we've seen in the 2021 cycle that we can see a few of these price Discovery uptrends and Corrections before we inevitably top out in the bare Market cycle so let's talk about these price discovery uptrend and corrective phases
in this current parabolic phase of the cycle so subscribe to the channel for more videos like this in the future like this video if you enjoy content like this going for and let's dive right into it and before we dive in a quick message from our sponsor our sponsor for today's episode is bit Unix and they are a really great crypto exchange for you to consider for your daily crypto trading and investing they are a no kyc no VPN Futures exchange and their liquidity is on par with the top exchanges users can trade over 250
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much bit Unix for sponsoring this episode let's dive right into it if we focus on the post Haring reaccumulation phase we've seen that happen in the past on numerous occasions in different Bitcoin Cycles it's a staple when it comes to structures after the harving and then when we break out from that reaccumulation phase we enter a price Discovery uptrend and in 2021 we saw that this was quite an extensive uptrend multi weeks in the process of forming that uptrend before transitioning into its first price Discovery correction so just the first takeway in terms of a
principle if we're looking at this first price Discovery uptrend right over here and we have this first price Discovery up Trend right over here then that's the analogous situation across Cycles we then see this the first price Discovery correction and this is the first price Discovery correction in this cycle so you can see that the analogous price Discovery uptrends and correction are roughly the same what's interesting is that we saw history repeat itself in the guys of weeks six and8 in the price Discovery uptrend producing some sort of downside in 2021 we saw 16% in
week 8 of The Price Discovery uptrend and minus 8% downside in week 8 of The Price Discovery up from 2021 here we actually saw week six and the week eight actually produce quite a bit of downside in this corrective period prompting that price Discovery correction so as you'll remember from before we even got this corrective period we were preparing for a correction for that first price Discovery correction but what we need to really emphasize is that the this price Discovery correction it was 5 weeks long and it was only 177% deep and if we look
at for example historical price Discovery Corrections then this one in 2021 it occurred in approximately week 12 and and it was 31% deep but it did last 3 to 4 and 1 half weeks or so 3 to 4 weeks I'd see and if we just move on to 2017 for example then it was in week 8 where we got a price correction in the price Discovery phase in 2017 and this one lasted 1 two three three and a half weeks before reversing towards the upside but this was 34% deep so just going back to this
chart here this price Discovery correction was unprecedented in the sense that it was just a week longer than what we've historically seen we tend to see 3 to four weeks uh duration in these price Discovery Corrections and we typically tend to see deeper ones but this was a shallower one so Not only was it a little bit different cuz it was longer but it was also shallower so it was different in that respect so it just showcases to us that even though the corrective weeks 6 to 8 were correct in terms of timing this price
Discovery correction history repeated in that regard but history doesn't always have to repeat it often Rhymes and it rhymed in terms of multiple weeks of downside five weeks typically we tend to see three to four weeks and of course the downside was shallower in this pullback rather than what we saw in this pullback of 31% in 2021 and 34% in 2017 so maybe those pullbacks pullbacks are getting shallower but I do think we'll see a stronger pullback in the future in the second price Discovery correction so if we're looking at this price Discovery correction right
over here you can see that we're already trying to transition out from it and it tends to occur in the form of a U-shaped reversal we saw that right over here and we also saw that sort of u-shaped reversal take place right over here as well so what's great about this is that we're already seeing this u-shaped reversal so what is the confirmation signal that we need to see before we transition into the second price Discovery uptrend because this correct Ive period is pretty much over we haven't really broken to new highs sustainably we have
made new alltime Highs but I'd like to see candle buied new alltime highs just to Showcase that this is a sustainable breakout and that we're going to continue rallying higher we need to see confirmation of breaking those old alltime highs and that final major resistance on the weekly time frame so if we look at 2021 for example then you can see that this is the final major resistance on the weekly time frame and we need to get a weekly close above here and even a retest of that same resistance as you can see right over
here so resistance right over here and then weekly close above it to turn this level into a breaking resistance and then turn it successfully into a support to then springboard and Trend continue to new alltime highs and Beyond that's the sort of confirmation that we really need to look out for going forward so if we zoom into this current cycle we have this resistance right over here and we're just we're really right on the edge of that we're just teetering in and around that region so you can see that that's approximately 104 a2k that we
need to weekly close above to really set up and Trigger that cascading buy side pressure to fuel price to new alltime highs and Beyond and if we get a weekly close here then we'll see that this resistance this final major resistance on the weekly time frame is crumbling but what we might need to see is a retest of this old resistance into a new support that's what 2021 is suggesting to us that a weekly close followed by test would fantastically confirm that breakout to new all-time highs and Beyond that's what 2021 is suggesting and that's
one of the reasons I'm saying that 2021 is suggesting that is because 2017 isn't suggesting that if we look at where we started that price Discovery correction in 2017 right over here you'll notice that we get this weekly close Above This level but we don't pull back into that same resistance to turn it into a new support we don't get that post breakout retest and so this is only another example of how history tends to repeat but not picture perfect so history tends to more more or less rhyme rather than repeat copy paste we tend
to see really important technical signals taking place in the form of a weekly close that tends to repeat but that post breakout retest doesn't always repeat so 2017 is showcasing to us that the weekly close is really important 2021 also showcases to us that this weekly close above that final major weekly resistance is really important but 2017 is Sugg guing that we don't always need to see a pullback into a successful post breakout retest before rallying to new alltime highs and 2021 is suggesting that sometimes actually we may need to see that sort of pullback
and successful retest before rallying into price Discovery and that second price Discovery uptrend and the funny thing about this is that actually if we look at the post breakout uh if we look at the post Haring reaccumulation phase then when 2017 broke out it went for a post breakout retest of the top of that reaccumulation phase before rallying into its first price Discovery uptrend so that's 2017 but if we look at 2021 for example just have a look here this reaccumulation Range High here we got a weekly close above here but no post breakout retest
of that reaccumulation phase so it just shows to us how conflicting these Cycles can be 2017 is showing to us that it can get post breakout retest of the reaccumulation phase but then 2021 is showcasing that the post Haring reaccumulation phase doesn't have to get successfully retested with a post breakout retest but then it actually showcases us a different tendency that maybe sometimes we need to get those post breakout retests in the end and 2017 does the opposite because we don't see that post breakout retest when recovering from the price Discovery correction so these really
important takeaways uh if we look at this reaccumulation phase for this cycle we can see that this is very 2021 esque right it's really 2021 esque where we just we close and rally without post breakout retesting this region and that's 2021 esque and if it continues to be 2021 2021 Es at this price predicament here then we'll need to see a weekly close and a post breakout retest to Rally higher but if for some reason we tend we we'll see a 2017 esque situation take place then a weekly close followed by a lack of a
post breakout retest could be enough to see us break to new highs so you can see how we often see a difference and a of different Cycles coming into play when it comes to different of types of technicalities but it really just the takeaway is very very simple weekly close above this final major resistance and we might very well be Off to the Races thanks so much for joining me in this video subscribe to the channel for more videos like this in the future like this video if you enjoy content like this going forward I'm
Rex Capal and I'll speak to you in the next one speak to you soon
