Bitcoin is unquestionably at a focal point in its current market cycle. But market cycles aren’t always visible as to what might occur, even if it appears to become more evident with time.
In the leading cryptocurrency by market cap, Decembers are particularly notable, culminating in most of the asset’s tops and bottoms. With the all-important month nowhere, and Bitcoin at a potential inflection point, something significant could be brewing.
Crypto Analyst Unveils Compelling Bitcoin Cycle Theory
In 2017, Bitcoin’s bull run and meteoric rise – as the mainstream media dubbed it – came to a climax in December of that year. December 2018 is when Bitcoin set its bear market bottom. In December 2019, the “post PlusToken low” was put in, according to analysis from crypto trader Philip Swift.
The cryptocurrency has primarily topped and bottomed during the December months, but one instance also kicked off the 2017 bull run and began the asset’s most recent parabolic phase.
Given the cyclical nature of Bitcoin, there’s a chance something equally important happens any moment now. What direction is it, and does market timing based on cycles or key dates hold any credence?
Remembering The Legendary W.D. Gann And The Role Of Astrology And Geometry In Market Timing
The idea that markets are cyclical and top or bottom at specific dates isn’t a new one. Legendary trader William Delbert Gann made a name for himself by combining geometry and astrology to time tops and bottoms in markets or when important inflection points might occur.
Gann noticed that tops and bottoms take place often in December in the commodities market, especially during the astrological event, “Sun conjunct retrograde Mercury in Sagittarius,” according to his Wikipedia page.
His tools are used today, although they aren’t very popular with the crypto crowd. But after putting his market timing technical analysis tools to the test, the results are quite shocking and line up with Swift’s cycle-based theories above. However, it still doesn’t help much with direction.
In the first tool we’re examining, each Fib time zone happens at a significant turning point. The first was at Bitcoin’s bottom; the second was right before the 2019 blow-off top.
The third at 0.5 takes place at the “PlusToken low” Swift points to another December moment of importance. The 2019 top was not in December, to be exact.
Yet another tool, the Gann Square, also clearly lines up with these key December dates. The geometrical support and resistance points all react with the asset’s intra-session price action.
Gann was also a “fan” of geometrical shapes, and other techniques he developed include the “Square of Nine, the Hexagon Chart, and the Circle of 360.” His fan-based tool completely nailed the recent breakout as pictured below. When the cryptocurrency made it through the final Gann fan resistance drawn from an all-time high, we saw the flight that took us back to the current levels.
Gann also paid close attention to the timing of cycles with a direct focus on numbers that appear to be based on ancient Babylonian mathematics, which used a sexagesimal number system. The number system is still the basis of time, with intervals of sixty seconds and sixty minutes. Night and day cycles are 12 hours each and each day is 24 hours – all divisible by three, and six.
The iconic trader specifically called attention to any timeframes with intervals of three, including the 3-minute, 15-minute, 3 hour, 6-hour, and 3-day charts, and he claimed to never trade in the direction of the trend on the third day.
On larger timeframes, Gann cared a great deal about the significance of 144 time periods. Could it just be coincidental, that Bitcoin broke out of the Gann fan, and retested the “meme” downtrend line on exactly 144 weeks from all-time high? The chart above offers strong evidence to support the theory.
Finally, Gann warned very specifically about economic super cycles, which take place every 90 years or so. Roughly 90 years ago, the massive stock market crash of 1929 brought with it The Great Depression. That recession officially ended in 1938. This would also mean that we’re beginning another super cycle now, with the beginning of the pandemic.
Ninety years before the recession of 1957, the Ohio Life Insurance and Trust Company failed, and over 5000 businesses went under, causing widespread panic.
Fiat money became so worthless that new coins were minted, depicting a Phoenix rising from flames.
The same sort of cash and the mythical bird can be seen growing on the cover of The Economist in 1988, where the magazine predicts the coming of a new world currency will come by the year 2018.
The coin depicting the Phoenix from 1957 has the month of November (Nov) printed on it. The astrological sign Scorpio is assigned to those born between October 23, and November 21. Scorpio is the only astrological sign with more than one animal associated with it.
According to astrological lore, the Scorpio transitions throughout life to the Eagle, and finally, rises like the Phoenix. Interestingly, Bitcoin was revealed to the world via Satoshi Nakamoto’s whitepaper on October 31, 2008 – essentially making Bitcoin a Scorpio and eventually a Phoenix by birthright.
The information above proves nothing at all and could be construed as pure coincidence, but with so much of Gann’s time-based theories and tools matching up with Bitcoin so perfectly, and his analysis being based on little more than math (geometry) and time, could there possibly be more to it?
And because math (computer code) and time (the halving and block confirmations) are crucial to the first-ever cryptocurrency anatomy, could there be some undeniable connection between the asset and astrology?
Suitably, only time will tell
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