• Prior article discussed the importance of Volume Profile in establishing important trading levels.
  • Bitcoin has a much easier path higher than it does lower.

On April 3rd, 2019, I wrote and article discussing why Bitcoin won’t spend much time in the 5k area. This was despite a lot of belief that Bitcoin would spend months trading in the 5k to 6k value area. This, of course, did not occur and we instead saw Bitcoin launch through both the 5k and the 6k value area. And last week, on June 17th 2019, I wrote an article predicting Bitcoin would reach 10k before July. Now, neither one of those prediction took a lot of foresight. So I want to throw out some more predictions in regards to the current big moves that Bitcoin is experiencing.

Key Date Ahead: September 14th, 2019

 

        The 15th of June was an important date on Bitcoin’s Gann Square of 52. There was a powerful square of price and time with the 4/8th (50%) time cycle in the current 52-week cycle that occurred on June 15th along with the 4/8th Major Harmonic at 100082.50. What is interesting about Bitcoin’s price action was the mirrored fold-back pattern suggested a down swing – which was certainly something that could be predicted given the strong bullish momentum Bitcoin has already experienced. Now, a deep pullback is still a possibility because we are within the time-frame of when a delayed response from the square of price and time can occur. I believe this to be the case due to the 180-day Gann Cycle of the Inner Year.

Gann wrote that the 90-day cycle was the most important inner year cycle. He wrote that it is important to watch for reversal to occur if something has been in a trend for 90-days. However, Gann also wrote that during times of fast price movement the time period can extend to 99-days. If we measure the number of calendar days from December 17th, 2018 to today, we get 190 days. This brings us to Gann’s next most important cycle: the 180-day cycle. Now, Gann didn’t write this, but I’ve experienced and learned that the same extension Gann gave to the 90-day cycle can be extended with the 180-day cycle, so a 180-day cycle can extend to 198-days. That would bring us to July 2nd. In Gann’s work, July 2nd is right next to some important Gann Dates.

Gann discovered that prices have major trend changes that occur around specific calendar dates – this is true for any instrument in the world. Between the dates of July 3rd and July 7th are important because Gann said to pay special attention to them as trends can often culminate and terminate during those dates. From a market seasonality perspective, Gann wrote that July 7th was particularly important to watch as trends often change on that date. So Bitcoin is definitely in a zone for experiencing a reversal to the downside. But time cycle wise there is a strong case for this to continue higher.

If we continue higher, I would expect price to move towards the next square of price and time and that is on September 14th, 2019 at the $15,123.25 level. And, if that trend continues, then the next and final square of price and time that would end the current 52-week cycle is on December 17th, 2019 at the $20,164 level.