• Point of Control is an important piece of analysis that shows equilibrium.
  • Price often reverts back to Point of Control.

Bitcoin’s Point of Control

On the chart above we see a series of horizontal peaks and troughs colored red, yellow and green. That indicator is known as the Market Profile (or Volume Profile as some would call it). The horizontal levels indicate how much volume was traded at a particular price – instead of at a particular time. This form of volume analysis is extremely important and useful in identifying where price may go to find support and resistance, as well as where its equilibrium is. The timeframe I’ve used to isolate this current Market Profile is from the swing low that preceded the drive higher back in March of 2015. We can see that the greatest amount of volume traded for Bitcoin was the $6,478 value area. The thin red horizontal line represents that value known as the VPOC or POC (Volume Point Of Control). The POC represents the highest amount of volume traded at a certain price, which tells us that is where equilibrium is at. It’s where the fair value is at. To understand the theory and behavior associated with this form of analysis, try to think of price connected to the POC by a rubber-band. The further price moves away from the POC, the more likely and swiftly it will want to return to it.

June is when I’m taking major profit

                I wanted to discuss the importance of the POC because we approaching it at a particular angle that suggests we will hit the 6400 – 6500 value area sometime before the middle of June 2019. In Bitcoin’s history, Late May to Late June have resulted in a major or minor swing high or low ever since the earliest trade data we have going all the way back to 2010. It’s actually quite fascinating how often this particular anniversary month(s) continue to show some powerful price action. It seems that for 2019, Bitcoin will face a major 2019 swing high around the 6500 value area – possibly in less than a month. The blue vertical line is June 20th and that particular time is where I plan on selling at least ½ to ¾ of my cryptocurrency holdings. The only thing that makes me a little apprehensive about doing so is the current trend and the behavior of new market participants as price moves higher. Very soon we will begin to hear news about Bitcoin being at $6,000 and the nearly 100% increase in value since January 2019 – and the news will be from non-crypto sites and outlets. We have seen, repeatedly, that new market entrants into Bitcoin cause massive parabolic rises and create insane and crazy euphoric moves. Being in a position to capture some of that movement as well as identifying when the next drive up is a key to making some serious bank in this market. For the time being, I predict a continued and steady rise towards the $6400 value area – a retest of the 5500 zone seems to be a scenario that will play out before we tag 6400.