Bitcoin rebound and moving higher, Segwit2x
Yesterday I wrote an update on the trade over the Christmas weekend and holiday, which also addressed the drop in the week before Christmas. I discussed the importance of remaining above the arc as support and that if there was any further breakdown, it would be extremely bearish and more than likely cause a large drop. That scenario has not played out.
I believe this chart may look a little different than the previous few charts I have posted. That is because we have broken out of the prior Gann Square and are in a new Gann Square with its own structure. The angle of our 45-degree angle (#2) is at the same slope as our previous square.
- This arc is our new resistance and support ark. We had a false break above it during overnight trading last night and then we proceeded to retrace all the way to the 14500 level. It should be noted that we did not trade below the 14500 level, we remained above it. During the last few hours of the normal pit open of the US session, we slowly regained our value area above the 15000 level. Price action today was very touch and go and choppy at these levels.
I am a purist and absolutist when it comes to my trading. I give very little credence to fundamentals when it comes to price action. My approach and reasoning for this is because I am a devout student of WD Gann and I regard his methods and pedagogy as masterful and genius.
My years of failure and then finally success as a trader has taught me that human behavior and market behavior are one in the same and that time is the master of everything. Gann has proven this over and over. He wrote, taught and believed that the markets and world events are reactions to cyclic patterns in time. Fundamentals are not the reason for price movement, they are a reaction to it. The same goes for price, but often the technical analysis aspects of price action preceed the fundamental reaction to time. And only technical analysis can forecast and provide a bias for where price will go.
It is not a coincidence that we have had such strong and reactive price movements as we approached the date of December 22nd, which is one of the most important time periods in all of Gann’s theory of time. It is not a coincidence that we have had other, major events occur around this time. As a student of Gann, this was something that can be forecasted weeks and months in advance.
And so, with the culmination of time, price and momentum, we have observed the culmination of a move, which means an extremely violent move is going to happen next.