Looking at BTC vs USD on the daily log chart do you notice anything interesting? If it's not that clear I will point if out... Since the 6th of January, the 6th of each month has been the pivot point for alternating high and lows... What does this mean? Well, if this trend continues it is likely we will find our next bottom on the 6th of March around 7100 before our next run up. Given we will be 3/4’s of the way through the symmetrical triangle this would also coincide with the ideal point to break out to the upside of the symmetrical triangle and send us higher.
For shits and giggles I have consulted my crystal ball and added in support and resistance areas for what could potentially play out if this trend of alternating high’s and lows on the 6th of each month continues…. Assuming this happens; then we form the hypothetical dashed uptrend channel climaxing in a rapid bull run between 6th of December to 6th of January 2019 where we will reach a new ATH of 33,330. We will then retrace 69.429% to 10,000 on 27th of Feb before the cycle continues in 2019 (but this time on the 28th of each month rather than the 6th).
For shits and giggles I have consulted my crystal ball and added in support and resistance areas for what could potentially play out if this trend of alternating high’s and lows on the 6th of each month continues…. Assuming this happens; then we form the hypothetical dashed uptrend channel climaxing in a rapid bull run between 6th of December to 6th of January 2019 where we will reach a new ATH of 33,330. We will then retrace 69.429% to 10,000 on 27th of Feb before the cycle continues in 2019 (but this time on the 28th of each month rather than the 6th).
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Exactly like what occurred around the 1st of April when we had a bounce off the bottom of the symmetrical triangle before finding resistance around the 50 EMA, and then ultimately finding our bottom on the 6th of May; the same thing is happening here. We know the law of 6's is true, so we expected this small bounce; otherwise we wouldn't be in a position to hit our lowest point on the 6th of June.
As you can see we have found resistance once again around the 50 EMA and we will now slowly move sideways and slightly down over the next 6 days (we could chop and change slightly up and down - but the point is we will only be moving between a range of about 7550 and 7080 at the most) before we hit our lowest low on the 6th of June. From here we will then proceed our momentous climb upwards over the next month to around 11,666 before retracing into our new uptrend channel.
There is another possibility that still keeps the law valid and that is that we hit resistance at the top of the symmetrical triangle on the 6th of July at around 8600 though I think this scenario is unlikely. If this happens we will hit 7729 on 6th of August before moving higher. I will recalculate the possible support and resistance levels and revised targets if this does play out.
Regardless, we know the law of 6's is true. It's the law for crying out loud!! Look for the bounce from the 6th of June and if we break out of the symmetrical triangle we are going to 11,700 before retracing. If we do not break out of the symmetrical triangle we are going to 8650. We will know for sure which scenario is going to play out by around 19th of June! Happy Trading!
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.