Bitcoin Has Broken through Resistance

Journalist:
November 3, 2016

Since yesterday’s price analysis article Bitcoin has broken through 4th resistance but has retraced to test that arc’s support again.

As I type these words that support is still holding.  Truth be told, for reasons I have repeated a few times in the past several days, my cautious expectation is that the support will hold.  The next targets are the top of the square at $790, and the 5th arc at $850.

The blue dotted line represents a cycle of 90 degrees of earth spin.  You may note that there are 2 such cycles since the May low to the next line on 11/14/2016.  180 degrees (1/2 a year) will have passed from that low.  I realize that many readers are now rolling their eyes at the notion that degrees of rotation and other planetary dynamics can impact prices.  I get that. I rolled my eyes at one time too.

I learned that WD Gann strongly believed in these things but I did not take the notion seriously.  But then I saw that the $264 Bitcoin high (anyone else here remember that historic day?) came EXACTLY, to the day, of one of the major planets having rotated 180 degrees from the date Bitcoin first traded. I can’t remember now if it was Saturn or Jupiter.  But in any case, my eyes were opened by the realization.  Of course many traders have already realized that Bitcoin trading is affected by the lunar cycle.

Longer term, the chart seems to be significantly more bullish than this shorter term setup suggests.  Regular readers will remember the setup we have looked at several times that shows 5th arc resistance all the way up in the $1450 range.

Having said that, don’t be complacent about the fact that price is about to exit the 2nd arc pair of the bear setup we looked at last night.

Just because we are bullish doesn’t mean we are right. IMHO I would suggest moving your stop loss up from whatever it was last night, just in case exiting that arc pair precipitates a sell-off.  In Elliot Wave terminology, the chart pattern above could be the tail end of a B wave, of an A-B-C correction. Protect your capital.

Happy trading!

Remember:  The author is a trader who is subject to all manner of error in judgement.  Do your own research, and be prepared to take full responsibility for your own trades.

Jim Fredrickson @jimfred1276

Jim has an MBA from the University of Southern California. He has been trading commodities, forex and bitcoin since 1993. You may email him directly at: jimfred1276 at gmail dot com. Feel free to follow him on twitter.