Yesterday I discussed the importance of time factors and how time is the catalyst for price changes. What is very important to see here is that we have not had any further strong momentum behind pushing Bitcoin further down. We have legitimate consolidation and accumulation. This kind of activity, especially near a market bottom, means a move is coming.
1. We have, on the daily chart, a legitimate candlestick pivot. I really want to break that down here.
- A candlestick pivot, in this case, a bullish candlestick pivot, forms when the middle candlestick has a lower low and lower high (LLLH) than the two candlesticks to it’s left and it’s right.
- The behavior of this formation tells us that traders have tried to push it down farther, but was then rejected from being able to go lower. Instead, we had a large amount of buying that actually pushed prices above the middle candlestick. This represents an inherent weakness in prices going lower and means that the trend has a very high probability of reversing (pivoting).
2. We would like to see Bitcoin achieve the price milestone of trading above and holding the 13330 area. This would represent a change in the trend and would provide significant momentum for higher movement above the 15000 handle.
3. Take note of this area. This is the monster time confluence zone that tells us trends have a very, very high chance of reversing here. It can not be stressed enough how powerful this area is in influencing the directions of price.
I would also suggest everyone take a look at the markets outside of Bitcoin. The time analysis I discussed yesterday and today is not limited to only Bitcoin. There is a monster number of time cycles in every financial market right now. The NZDUSD pair should capitulate soon, the EURUSD pair should thrust down more, the NQ should dump, the S&P should reverse. All major trending markets should be coming to a countertrend area soon. And where will this flight of capital from traditional markets go?