Gann date of August 8th – “Watch for tops and bottoms.”
In all of W.D. Gann’s work on cycles, market geometry, time, day counts, etc, he only discussed ten specific calendar dates. One of them was August 8th. He wrote, “47 days from June 22nd. Very important for a change in trend. Watch for tops and bottoms.” The importance of this can not be overstated because the calendar dates have repeating significance in all financial markets. Let’s look at why August 8th is important for cryptos.
One of the rules of technical analysis is to have unrelated technicals confirm each-other. For example: taking a long trade based on a pullback may be confirmed by a slow-oscillator, a historical price support zone, an important angle and support on a moving average. The same goes for time cycles and using time to identify turns in markets. August 8th is a big deal. But August 8th also falls on a number of important zones.
Confluence of Time
August 8th – We’ve discussed this zone already, but August 8th is an extremely important Gann date.
New Time 64-Day Time Cycle in the Murray system – the Murray system was a simplified Gann system created in the 90s. It creates a very static application out of Gann’s work. Murray stated things moved in either 16, 32 or 64 day cycles. These cycles also started on the same date every year, so there is no deviation in the organization of these cycles from year to year.
Lunar Phase – One of the great contemporary technical analysts is Larry Pesavento. He studied the lunar phases of the DJIA (Dow Jones Industrial Average) from 1885 to 2013. There were 1,583 moon phases in that 128 year time period. He found that it was best to buy three days before a new moon and sell 14 days after the new moon. We can apply this same methodology to any market. For Bitcoin, August 8th is 3 days before the next new moon.
Based solely on time, there is a strong indication of a reversal starting here. In fact, the reversal has already started back in July, but we get a stronger confirmation in the alt-coin market with the new lows that formed and the responsive buying that has happened. It’s a very positive market sign to see Bitcoin, Ethereum and Litecoin have gains above 1-2% while the altcoin market also make significantly higher moves.