Bitcoin: History Repeating Itself, but much faster cycles?
Updated
The Pattern:
It appears that a pattern is emerging in the corrective cycles of Bitcoin.
The magnitude of the highs and lows align almost completely, except at a much faster speed than before.
The Numbers:
Following projections from the bar pattern of the rally from 3,000 - 5,000 - 3,000 - 6,000, we can guess that this cycle will be 5,500 - 8,000 - 5,500 - 9,000.
More specifically, in the short term, we can expect a minor 200-300 correction (perhaps down to 7,100 or 7,000 support).
This should happen within the next 24 hours at this speed.
It will then become a crucial point. Just like the previous rally, many bears could consider the 200 - 300 correction as a signal to the start of Wave C of long term A-B-C Elliot Wave correction.
However, if, like before, the bulls can once again turn it around, then we might very rapidly see a rise to 9,000 by the end of the month.
The Target
In my previous Double Bottom Trade idea, I highlighted an eventual target of 7,900 (previous all time high).
This idea suggests that we will go further.
9,000usd is an important figure that many ideas have missed out.
Many U.S. traders fail to recognize the overwhelming volume of trading coming from the rest of the world, specifically East Asia.
The Aligning of Whole Numbers
There are very few numbers where major psychological barrier numbers align.
Quite roughly, 9,000 USD = 1,000,000 JPY = 10,000,000 KRW = 60,000 CNY
This alignment of whole numbers is likely to have a strong impact on the market.
Let's see how this unfolds.
As always, trade safe and stay nimble.
The speed and momentum in BTC now can easily destroy margin positions!!
It appears that a pattern is emerging in the corrective cycles of Bitcoin.
The magnitude of the highs and lows align almost completely, except at a much faster speed than before.
The Numbers:
Following projections from the bar pattern of the rally from 3,000 - 5,000 - 3,000 - 6,000, we can guess that this cycle will be 5,500 - 8,000 - 5,500 - 9,000.
More specifically, in the short term, we can expect a minor 200-300 correction (perhaps down to 7,100 or 7,000 support).
This should happen within the next 24 hours at this speed.
It will then become a crucial point. Just like the previous rally, many bears could consider the 200 - 300 correction as a signal to the start of Wave C of long term A-B-C Elliot Wave correction.
However, if, like before, the bulls can once again turn it around, then we might very rapidly see a rise to 9,000 by the end of the month.
The Target
In my previous Double Bottom Trade idea, I highlighted an eventual target of 7,900 (previous all time high).
This idea suggests that we will go further.
9,000usd is an important figure that many ideas have missed out.
Many U.S. traders fail to recognize the overwhelming volume of trading coming from the rest of the world, specifically East Asia.
The Aligning of Whole Numbers
There are very few numbers where major psychological barrier numbers align.
Quite roughly, 9,000 USD = 1,000,000 JPY = 10,000,000 KRW = 60,000 CNY
This alignment of whole numbers is likely to have a strong impact on the market.
Let's see how this unfolds.
As always, trade safe and stay nimble.
The speed and momentum in BTC now can easily destroy margin positions!!
Note
We have broken ATH as per the previous idea.Stay watchful of the upper channel resistance at 8100-8200.
However I am optimistic of breaking that too as we have good volume coming in.
Trade closed manually
We went past the target trajectory indicating that this idea is incorrect.Falling back to other more realistic and less optimistic numbers, especially after the news about Tether.
Seems like things will get messy over the next couple of weeks with plenty of opportunity to FUD.
Rebound might be exit pump for key players to leave before the turn on maximum fear and panic mode on news outlets...
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