Key swing dates ahead for Bitcoin and Ethereum
Important swing dates occur very soon for Bitcoin and Ethereum. The swing dates have a high probability of changing trends and/or creating powerful corrective moves.
The chart above is Bitcoin’s Law of Vibration chart. The critical level I want to call your attention to are the blue vertical lines on June 26th, 2019 and January 24th, 2020. Those two dates represent the beginning and the end of a 192-day Law of Vibration cycle. This cycle has two crucial behaviors. First, it operates similar to Gann’s 180-day cycle which says that anything that has been in a trend will likely find a reversal or corrective move at the end of the 180-day move (can extend to 198 days). The second behavior is that the cycle creates a source of resistance-in-time to the trend in force. The likelihood of a reversal is increased when the high of the trend occurs at the beginning of the trend and the low is at the end of the trend. How should we interpret Bitcoin’s immediate price action concerning the January 4th, 2020 date? There remain two more days until January 4th date. The low I would expect Bitcoin to reach would be the 4/8th inner harmonic at 6343.51. I would not consider the 7-month low on December 17th, 2019, to be swing low until roughly a week after January 4th – and only if the 7-month low has not been broken.
While Bitcoin (BTC) closed 2019 higher nearly 90%, Ethereum closed relatively flat, but lower nonetheless. The thick red vertical line on June 25th, 2019, was the 6/8th harmonic time pivot which generated a substantial sell-off. The sell-off has continued to this day. Ethereum recently made new 2019 and 7-month lows as recently as December 18th, 2019. The next time pivot is the same pivot we saw on June 25th, 2019 and it occurs on January 5th, 2020. The 6/8th harmonic pivot, in particular, is a powerful reversal pivot. But Ethereum looks to trade lower and create new 7-month lows, surpassing the 2019 low and possibly the 2018 low. If that were to occur, we might not see the ultimate low for Ethereum until the end of the current Law of Vibration cycle on February 21st, 2020. If we do see a continuation move from the 6/8th time pivot, then the next reactionary pivot will be the 7/8th harmonic on January 29th, 2020. Depending on how long you have been involved in cryptocurrencies, you may recall an event in 2017 and early 2018 that was referred to as ‘The Flippining.’ The Flipping was an event that would see Ethereum surpass Bitcoin in market cap. That has not occurred and it may never happen. The reasons for this are many, but mostly because Ethereum has a great many competitors – the chief threat to its supremacy and utility is Cardano, which plans to have its full network released in 2020. The Flippining will instead see Ethereum being replaced by another or several cryptocurrencies to challenge Bitcoin’s hegemony and dominance over this market.