To begin today’s article, I’m looking at an eight hour candle chart of Bitcoin. You’ll note that this setup begins at the low in August.
Last night we looked at the daily chart. You may recall that last night we saw that the daily chart setup had just reached the end of the 5th square. Therefore it was highly likely that either a reversal or acceleration would begin from that point.
I have marked with a pink arrow the time frame that was called out as a potential turning point on the daily chart. You will note that it appears that a low was put in at that time. You will also note that on this 8 hr bull setup we are now at the end of the 3rd square in time. So, two different setups suggest a likelihood that we are at a time when an acceleration is possible, if not likely.
You will note that price has passed the 3rd arc pair and is heading for the 4th. At the current rate of climb, it seems probable that pricetime will hit that arc somewhere between $700 and $720.
However, 4th arc pairs do not usually mark an end to a bull move. (But never say never!) They more typically simply slow the move down with a pullback. So, it seems probable that this bull move will go to the 5th arc pair.
Remembering that the market is fractal, let’s look at a smaller bull setup starting from the very recent rally.
It is hard to see on this chart, but as I am typing this article price has passed the first (blue) arc. Assuming that we get a close above that arc, this will give us a buy signal on the 8 hour chart.
Finally, let’s put both of these setups on the same chart to see where their respective their respective 5th arc pairs intersect.
I realize that this is a confusing picture for those who have not spent time studying Gann squares. (I assure you it gets easier with practice.) I have highlighted with a green circle the area in which the two setups intersect at their 5th arc pairs. Clearly, it is too soon to be sure, but nevertheless it is entirely reasonable to suggest a target in the $830 range to be reached in about two weeks time.
I for one have added a long position in this asset as a result of what I am seeing here.
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.
Image from Shutterstock.