Bitcoin has been showing some strong movement over this Monday trading session. It has continued to be bought up even in overbought conditions. At the same time, we are coming up to an end and beginning in a number of time cycles on Bitcoin’s chart. These cycles are shared with all other cryptocurrencies. What we have in front of us is a strong bias for bullish momentum.
Current Price Action
Bitcoin is sitting just shy of its long-term downtrend line (thick red diagonal line). It has been tested at least five times since the all-time high of near $20,000. And each time it gets tested, the frequency of the retest get’s shorter and shorter. This an indication of price wanting to bust through to higher levels. The price action during this Monday session has been extremely bullish. The biggest selling participation we have experienced this Monday was near the lunch hour of the London session (around 6 AM CST).
But I want to call your attention to the blue horizontal line on the chart. That line is the most important one on our chart. As a ‘Gannalyst’, I look for these kinds of cycles because they are the most powerful indications of price changes and moves. That blue horizontal line is important for the following reasons:
- End and beginning of a new Gann time cycle.
- End and beginning of a Fibonacci time cycle.
- Full Moon starts on this date. Full Moons that form while a market is trading near a swing low have a high probability of moving higher.
- A new month begins.
- End of a 3 step 7-day swing cycle (21 days/3 weeks).
- Near an 11-day cycle end.
What does this mean?
Because we are in a short-term swing low from the current swing high and because we are well off the major swing high made back in December, we can expect to have a strong bullish bias and high probability of that bullish bias. One of the things to keep in mind is that the most recent moon phase (New Moon) did not follow through with a massive sell-off for the past two weeks. In fact, it looks like we are going to close fairly flat or slightly higher. When the price action goes through a bear phase, we should expect to see a lot of selling pressure during a New Moon phase. When we don’t we get a signal that trends are beginning to change. The Fibonacci cycle and time cycle periods on March 1st are also signs of change. Prices can move before these dates. We are currently well within the parameters for a change in trend before these cycles appear, which is normal behavior.
Time cycle analysis and price action give strong, strong probabilities for the next bull move starting very soon.