Bitcoin, Ethereum and Litecoin at key Gann level.
Probably the most important aspect of this market geometry concerns the angles. Gann used a Rule of Angles, which states that when price closes above or below an angle, it will move to test the next one. We can see how this plays out below:
BTC, LTC and ETH are all at key levels with their respective Gann Square of 90. The most important component of this form of Gann analysis is being aware of where all of your vertical, horizontal and diagonal lines are. The vertical lines represent time, the horizontal lines represent price levels and the diagonal lines represent momentum (which themselves are a form of a trendline and/or support/resistance.Notice how when price breaks angles, they often do move to test the next angle.
Bitcoin and Litecoin are right on their respective angles which is right on the beginning/end of a new Square of 90. When price is trading near that zone, the distance between the angles significantly expands, providing large moves. Often these moves are the start of a new trend.
The next angle above the one that Bitcoin is currently resting against is all the way up towards the 8200 zone. When prices move past angles that have a large expanse above/below, they generally move quickly and forcefully. That behavior would be consistent with the other forms of analysis we have used to study the future price action of Bitcoin.
Just like Bitcoin, Litecoin is resting on one of its angles. What is a little different is the distance between the current price level and the next angle, which is sitting at the $160 value area. Can price move that fast and at that particular pitch? Sure. Look at the price action from March 26th to March 30th. The price action traded precisely within that structure. We can and should expect a similar move.
Ethereum’s chart is the only one out of the three that looks a little different. It’s a little different because it’s not trading up against one of it’s Gann Square of 90 angles. However, the lagging behavior of Ethereum can be chalked up to the extreme oversold conditions of this currency. It is not far from that angle and out of the three coins discussed on this chart, Ethereum has the highest potential for bigger percentage moves here in the near future.