Cryptocurrencies – A major congestion and divergence of financial astrology patterns
Over the past 14 trading days, the entire cryptocurrency market (and all commodities and currencies) have been in a very sensitive state of flux. Bitcoin has not been immune, obviously. Between now and the 30th of May, we enter into a great smackdown of various time cycles and astronomical positions.
Net week should be interesting. We have a 14-day bullish divergence that so far has not resolved. In addition to that, the $7,000 value area is a 360-degree Square of 9 level, which acts as a very strong stopping/resistance level. Now, what is most interesting is the considerable divergences in the lunar phases. New Moon phases that appear during an uptrend become stopping points for Bitcoin and then sell off for about 2 weeks. We also have the Moon at its max latitude and it’s in apogee. Both of those conditions also have signaled bearish conditions if price action is near a swing high.
The divergence with these lunar cycles lies not only with the divergence in price action but along with the planetary aspect of Mars-Square-Jupiter. Historically, this planetary aspect has been shown to be a signal for bullish trends and conditions – regardless of the current trend.
Ok. Now that I’ve taken off my tinfoil hat and put away the chicken bones, tarot cards, and magic-8 ba… I mean crystal ball, we can interpret this.
Regardless of the normal behavior that some financial astrological phenomena can create, it’s important to recognize that financial astrology is a complementary form of analysis, not a confirmatory. You only get to confirming analysis when you use more than one approach (fundamental, technical, financial astrology). To me, if there is a confluence of financial astrological factors but price action isn’t in a condition to support the highest probable response from that fin-astro factors, those factors still remain as strong triggers for change.
The current value area that Bitcoin is trading in is a very, very strong support zone (it actually extends all the way down to 6800). So when I see price finding some initial stopping pressure at the current value area, as well as approaching 21-days (Gann day counts, 7×3=21) in this down trend and the extended bullish divergence – I see a bounce. How far is that bounce? I still have the next major swing high between now and November to appear in late June. And those two 360-degree value areas above us are $13,250 and $21,500.