3 Day Folklore in Crypto (Patreon)

The phrase “3 days of blood before the bounce play” is a long-standing crypto trading adage dating back to Bitcoin’s early volatility around 2013. It describes the pattern where crypto markets often drop sharply for about three days (“blood”) before rebounding (“bounce”).

The idea is psychological rather than mathematical—urging traders not to panic-sell during short-term dips.

I would argue that things recover faster on the return

Day 1 DIP - Blood

Day 2 More DIP more Blood

Day 3 50% Recovery

Day 4 more Recovery