The range that we have been trading has been tight. No, it has been thin. No, it’s been ridiculous and taut. The average range of Bitcoin over the past 3 months has been $3,000. From yesterday afternoon to now (4:25 PM CST) we have steady decreased the trading range from $800, to $500 and now a whopping $240 range over the last 5 hours. And we’re right on top of the $10,000 value area.
I rarely ever show anything under a 1-hour chart, but this is a 15-minute chart. It shows the absolute tightening of this range the imminent breakout.
I applied the Bollinger Bands to the price chart. Quick thing on Bollinger Bands:
- Bollinger Bands are a measure of volatility in the market. The two light blue lines that float above the candlesticks are called the Bollinger Bands. The closer they are together, the less volatility is involved in the market. When they expand, that means volatility is expanding. This tightening is called the “Bollinger Band Squeeze” or just “the Squeeze.” This kind of setup comes before breakouts and major moves.
Notice also that the two diagonal lines have formed a triangle, this is another setup and an ‘old school’ form of a Bollinger Squeeze. This is a literal tipping point in Bitcoin. Especially today!
Remember what today means in Gann’s time cycles:
- Today is exactly 45 days from the all time high of Bitcoin. 45 is a reversal count in Gann’s analysis.
- Today is also the time when the Super Blue Blood Moon, Full Moon, and Total Lunar eclipse forms. Historically, it’s been 150 years since we had that (1866 was the year of the Panic of 1866).
We have a very, very strong bias for a change in trend here. In fact, as I pointed out back on January 24th, we saw the beginning of the turning of these long trending markets. If you’ve been paying attention to the stock market, you’ve noticed the sting of the pullbacks so far this week.
Expect to see continued countertrend moves not only in Cryptocurrencies but in all long trending markets. We are in the middle of this time period where we should observe strong changes between the 26th of January and February 5th.