Bitcoin time based pivot, bounce expected
There was a major pivot in time that Bitcoin encountered on the 10th, which accelerated the move lower. However, in between each major time cycle are minor time cycles. Some of the fastest movements in price happen when the minor time pivot of a time pivot occur. And that’s right where we are sitting.
- This is the major time pivot back on May 10th.
- This is the minor time pivot. We will generally see swift moves off of this pivot because of it’s relationship and proximity to the last major time pivot.
- Below price is an arc that acts as a strong support level.
- We need price to continue to follow the slope of this arc or, drive significantly higher through the arc. Additionally, the 1×5 angle (blue angle) should act as some short-term resistance, but a break above and higher will indicate another bull move.
We should also consider some short-term news related data as well: Consensus is ending today and events like that have generally been very bullish for the entire cryptocurrency market. Just like in Forex, Futures or any other traded instrument, we often see the inverse move of sentiment happen before the release of news or the end of an event. So it is perfectly natural for Bitcoin to be trading at a decreased level prior to any significant historically bullish event. The fact that price ends up right near a major confluence zone of bullish and supportive time cycles is not a coincidence.