Patterns Patterns Patterns - Here's an interesting one!
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
Good analysis. Keep it up @jcornel!
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.
You are probably right, perhaps on June 5th then?
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.
How high will it go?
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.
Haha they do every other month for sure. :)
What interesting information. I have marked the calendar on 6 June. Thanks for the information.
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.
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.
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.
I had not seen that 10% number before, do you have a source? That does provide some context for sure...
Very interesting numbers.