Patterns Patterns Patterns - Here's an interesting one!

in bitcoin •  25 days ago

Over the past few years there have been numerous patterns that have emerged in cryptocurrency trading.

Usually working until everyone starts talking about them, then suddenly they do not.

The "rally every year on Consensus" pattern being a perfect example.

The one I am about to share probably follows that similar "pattern" (see what I did there?!). Meaning it works until everyone starts talking about it and expecting it.

This pattern has to day with bitcoin achieving significant highs and lows on the 6th day of every month:

That might sound crazy right?

Well, it probably is, but take a look at this chart of 2018 thus far:

(Source: https://usethebitcoin.com/the-6th-pattern-on-bitcoins-price-coincidence-or-market-manipulation/)

Take a look at the data points:

January 6th - Bitcoin made its high around $17k for 2018 (thus far).

February 6th - Bitcoin made its low around $6k for 2018 (thus far).

March 6th - Bitcoin made a short term high around $11,500.

April 6th - Bitcoin made a short term low around $6,500.

May 6th - Bitcoin made a short term high around $10k.

June 6th - ?

That is a lot of data points to be purely coincidence!

If this pattern holds up we could expect to see bitcoin make a low of around $7k right around June 6th and then head skywards for the next month or so until July 6th where it would peak in the near term.

Coincidence or something more?

Given that a lot of trading is done by machines at this point, I would not be surprised if this is actually a tradable pattern.

Buy programs initiated at certain points or on certain days and sell programs initiated at other points/days. The US stock market has certain trends that tend to play out similarly for a while.

That being said, remember that this is not investment advice or something that an investment decision can be solely based on. It is an interesting pattern though, and one we will be able to see whether it plays out or not in just about a week's time.

Stay informed my friends.

Follow me: @jrcornel

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Good analysis. Keep it up @jcornel!

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Thanks @corndog54!

thanks for the info i think we going down

I managed to find the most important pattern in Bitcoin. Just take a look at some of my latest bitcoin posts.

Everyone is talking about 6 June, so nothing will happen this time round. I think.

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You are probably right, perhaps on June 5th then?

Excellent mate! I fully agree with you, this is an automatic trading pattern. The only hope I have is that maybe the market experiment an entrance of fresh FIAT at JULY 6th sufficient to break that upper resistance.
Steem on!

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Yes, that would be nice wouldn't it.

Once again fantastic job having a meaningful information and right nice analysis

Bitcoin is ok. But Steem price has plunged again to the worst value lately

Somebody goes to the bank on the 6th of every month. Crazy stuff.

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Haha they do every other month for sure. :)

What interesting information. I have marked the calendar on 6 June. Thanks for the information.

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Nice, we will see what happens then.

This is called a symmetrical triangle pattern..They contain at least two lower highs and two higher lows. Lines convergeas they are extended and a symmetrical triangle takes form.

Skjermbilde 2018-05-30 kl. 22.52.14.png

Skjermbilde 2018-05-30 kl. 22.52.00.png

Skjermbilde 2018-05-30 kl. 22.54.36.png

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Yes, the hope is for a break to the upside when it ultimately resolves, though the predictability of which way they will ultimately break is pretty much a coin flip.

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I think its exciting to look at TA and charts, but remember the fundamentals. The dot com bubble was 10% of global stock market value in 1999 - around 5 trillion USD was in dot-com stocks. Most of that money was from the US. Crypto is global. Cryptos is a currency AND has utility beyond that. It basically competes with currencies, gold, stocks and possibly even debt.

But if we take away debt, we still compete against a over 100 trillion dollar market. I don't think 10% of that is unlikely levels to see bubble tendencies. I don't think this is the bubble. I think the bubble is at least 20x from here. Between 7 and 10 trillion USD market I would start to cash out around 10-20%. And then whatever you keep in there is possibly for your children or your pension age, unless cryptos tank forever.

300 billion market is less than what individuals has...its less than big companies. It's nothing.

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I had not seen that 10% number before, do you have a source? That does provide some context for sure...

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Very interesting numbers.

let's hope it continues to rise, so we will see much benefit

Will be interesting on June 6th to see what happens!

That is a very unusual pattern, would be difficult to know when to buy and sell. Do you often day trade?

Are these things self-reinforcing? The algorithms behind the trading systems see some patterns and try to pre-empt it next time. Any human has to second guess what the machines are trying to do. If you bet on this trend then let us know how it went next month.

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Yes, they probably are. Though now that this pattern is out there, it probably doesn't work anymore...

Interesting pattern. The lows seem to be relatively consistent in dollar bottoms and the highs seem to be consistent in percentage gains. If it's valid, below is something we might see then regarding BTC price action.

But remember what Confucius say: A pattern works... until it doesn't!

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That $6,100 number wouldn't be much fun...

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Agreed. Here's another model I ran based on the down trend in percentages instead of price. Let's hope this pattern is the one the MM's have in mind:

This is exactly the things are doing nowadays.
The very fantastic analysis that is near to the truth.

Very interesting. But we should also keep in mind that our minds are pattern-seeking machines. We always search for meaning and order in chaos - and sometimes we're right. Sometimes (I'm looking at you astrology and religion) we're wrong.

Still, the machine-trading is worth considering, and may create odd patterns.

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That is a good point, about the patterns amidst chaos.

The fact that this is a trend is hilarious and remember june is the 6th month, 6/6

Most people are looking at this pattern, but this is the first time I've seen someone point out that it's happening always on the same day. That's very interesting!

It's not exactly on the 6th, tough, but always near it.

As the triangle "squeezes", we can see that the volatility is drecreasing. BTC is moving less every month, at least until this triangle is broken.

Interesting analysis. That means we should fasten our seatbelts for a down ride.

I do not understand about graphics @jrcornel please explain a little about the charts I have voted please visit my blog at times when there is time

I like the article and the chart... good perception picking up on the dates - very interesting. Life does have rhythm and the monthly thing sort of makes sense doesn't it.

The secret bull move is in the works. Trust me it is coming but only stupid will start buying when it is already too late.

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How high will it go?

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interesting analysis

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Thank you. If this pattern holds up, we may be much happier over the next month or so as prices start to climb. :)

lol I saw this post right after I replied to you on your other post.

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Also, could this be a buy the rumor sell the news scenario?

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Thanks for you to sir.

Good article! I hope it will break up. Please check out my steemit account. I am doing TA, crypto news and giveaways. Thank you!

Good article thank you.

Ok this is good; thanks you.