“Cyclical Nature Of Bitcoin” Could Provide Clues On Continuation Or Correction

Bitcoin is clearly at a crucial point in its current market cycle. However, market cycles are not always obvious as to what could happen, even as the when becomes clearer over time.

In the leading cryptocurrency by market capitalization, December is the highlight, culminating in most of the asset’s peaks and troughs. With the all-important month here and Bitcoin at a possible tipping point, something significant could be brewing.

Crypto Analyst Reveals Compelling Bitcoin Cycle Theory

In 2017, the bull run and meteoric rise of Bitcoin – as the mainstream media put it – peaked in December of that year. Bitcoin hit its bear market low in December 2018. In December 2019 the “Post PlusToken Low” was introduced, after analysis from crypto trader Philip Swift.

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The cryptocurrency hit rock bottom primarily in the December months, but one instance also started the 2017 bull run and started the asset’s final parabolic phase.

Swift says Decembers are important for Bitcoin market timing | Source: BTCUSD on TradingView.com

Given the cyclical nature of Bitcoin, the chances are that something equally important could happen at any moment. But in which direction is it going, and is the market timing based on cycles or deadlines credible?

Remembering the legendary WD Gann and the role of astrology and geometry in market timing

The idea that markets are cyclical and can go up or down at certain times is not new. Legendary trader William Delbert Gann made a name for himself by combining geometry and astrology with time peaks and troughs in markets or when major turning points might occur.

Gann December dates

Notice the December tops and bottoms in the Wheat market match what Swift says above | Source: Wikipedia

Gann noted that tops and bottoms often occur in December in the commodity market, especially during the astrological event “Sun Conjunct Retrograde Mercury in Sagittarius”. according to his Wikipedia page.

His tools are in use today, although they are not very popular with the crypto crowd. After reviewing his market timing technical analysis tools, the results are quite shocking and in line with Swift’s cycle-based theories mentioned above. However, it still doesn’t help much when directing.

“Cyclical Nature Of Bitcoin” Could Provide Clues On Continuation Or Correction

The Gann Box is one of many time-based technical analysis tools the trader left behind | Source: BTCUSD on TradingView.com

In the first tool we examine, each Fib time zone occurs at a major turning point. The first was down at Bitcoin, the second just before the 2019 blow-off top.

The third at 0.5 takes place at the “PlusToken low”. Swift points to another important December moment. The peak of 2019 wasn’t December to be clear.

“Cyclical Nature Of Bitcoin” Could Provide Clues On Continuation Or Correction

The Gann Square is another. Note how the angles intersect important points in price action | Source: BTCUSD on TradingView.com

Another tool, Gann Square, also clearly coincides with these important December dates. The geometric support and resistance points all respond to the in-session price action of the asset.

Gann was also a “fan” of geometric shapes, and other techniques he developed were the “square of nine,” the hexagon diagram, and the circle of 360. “His fan-based tool completely nailed the recent breakout as shown below. When the cryptocurrency weathered the last Gann fan resistance from the all-time high, we saw the breakout that brought us back to current levels.

Bitcoin 144 week breakout

The Gann fan perfectly predicted the timing of the retest, coinciding with key numbers from Gann | Source: BTCUSD on TradingView.com

Gann also paid close attention to the timing of cycles, focusing directly on numbers on which it appears to be based ancient Babylonian mathematicsthat uses a sexagesimal number system. The number system is still the base of time with intervals of sixty seconds and sixty minutes. Night and day cycles each last 12 hours and each day 24 hours – all divisible by three and six.

The legendary trader specifically drew attention to time frames with intervals of three, including the 3-minute, 15-minute, 3-hour, 6-hour, and 3-day charts, and he claimed never in the direction of the trend to act the third day.

In larger periods, Gann was very concerned about the meaning of 144 periods. Could it really just be a coincidence that Bitcoin broke out of the Gann fan and retested the downtrend line “meme” exactly 144 weeks after the all-time high? The table above offers strong evidence to support the theory.

“Cyclical Nature Of Bitcoin” Could Provide Clues On Continuation Or Correction

This Gann fan is a dangerous take on the Dow Jones at the end of 90-year supercycle | Source: BTCUSD on TradingView.com

After all, Gann specifically warned of economic supercycles that take place roughly every 90 years. About 90 years ago the massive stock market crash of 1929 was connected with the global economic crisis. That recession officially ended in 1938. It would also mean that we are now starting another super cycle with the start of the pandemic.

90 years earlier was the 1957 recession when the Ohio Life Insurance and Trust Company failed and over 5000 companies went undercausing widespread panic.

“Cyclical Nature Of Bitcoin” Could Provide Clues On Continuation Or Correction

Fiat money became so worthless that new coins were minted depicting a phoenix rising from the flames. The same type of coin and the mythical bird soar the cover of The Economist in 1988where the magazine predicts the coming of a new world currency by 2018.

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The month of November (November) is printed on the coin that depicts the phoenix from 1957. The zodiac sign Scorpio is assigned to those born between October 23rd and November 21st. Scorpio is the only zodiac sign more than one animal is associated with.

Bitcoin Global Currency Reserve Crypto Gann Cycle Market The Economist

According to astrological traditionThe scorpion turns into an eagle in the course of life and eventually rises as a phoenix. Interestingly, Bitcoin was revealed to the world through Satoshi Nakamoto’s whitepaper on October 31, 2008 – essentially making Bitcoin a Scorpio, and ultimately a birthright phoenix.

The information above proves nothing at all and could be construed as sheer coincidence, but with so many time-based theories and tools from Gann so perfectly in line with Bitcoin and his analysis based on little more than math (geometry) and time, it could there may be more?

And because math (computer code) and time (halving and block confirmation) are so crucial to the anatomy of the very first cryptocurrency, could there be an undeniable link between the asset and astrology? Appropriately, only time will tell.

Featured image from Deposit Photos, Charts from TradingView.com