First 1/3rd of 2019 bullish for Crypto
Crypto market boomed in early 2019
It is easy to get bogged down with the day to day movements in cryptocurrencies. This is especially true for those of us who are active in the field and pay attention to it on a daily basis. So it is very easy for those of us who do pay attention day after day, to feel some slight apprehension about any further upside movement. And this is very true for anyone has been paying attention to the price action in April of 2019. April saw a fairly constricted market and fairly distributive trading range that existed the entirety of that month. But when we look at the price action and behavior from the beginning of January 2019 to the end of April 2019, we get a great perspective. From the January 2019 low to the April 2019 high, the crypto market gained a staggering +71.44%. The first 1/3rd of the year for 2019 has certainly been the most bullish in almost two years. And the fundamentals back that up.
Volume has surged into cryptocurrencies over the past 4 months. New historical highs in volume and participation have been recorded in this market. We’re also seeing traditional investment and brokerage houses seeking to let their retail clients participate in this market. TD Ameritrade and eTrade being the most recent participants. Additionally, there are a slew of ETFs and Clearing House filings sitting at the SEC and waiting for approval. Most recently, the Chairman of the SEC was on Capitol Hill and he confirmed that there was massive interest in cryptocurrencies since 2017 and that the SEC is expecting a growth in entities filing for Clearing House registration. But the question most of us want to know is: when is the next uptrend?
The Next Leg Higher
I want to bring your attention to Bitcoin’s chart. On November 8th, 2018, Bitcoin began the final bear move lower with a strong and persistent (yet fast) capitulation move. Bitcoin lost over -52% of it’s value in a 39-day period. If we look at the second most important Gann Cycle of the Inner Year, the 180-day cycle, we get a very good idea of when we could see the next bull wave begin. I believe that May 4 to May 7th is when we should see the next big drive higher in cryptocurrencies. May 6th, 2019 is 180-days from November 8th, 2018. Additionally, there is a time pivot in the current Law of Vibration time cycle. These time pivots create powerful zones that have high probabilities of initiating big moves. There is also a new moon phase (New Moon) that begins on May 4th. We should also observe that a 30-day ‘rest’ period was found in all of April when Bitcoin ranged and created a new support level above the 5000 value area. This 30-day consolidation level is normal, common and should be expected after a big move like the crypto market experienced from January – early April 2019.