BITCOIN The 0.786 Fib Monthly Candle Rule shows the Support

Greetings traders and investors. With Bitcoin showing remarkable strength these past few weeks, despite having broken above key long-term Resistance levels (see my past studies), I thought it'd be beneficial to look what the new long-term Support can be based on its historic Cycle patterns.

** The 0.786 Fibonacci Monthly Candle Rule **
I've come across something simple yet very reliable on cyclical terms as it turns out. During the start of every new Bull Cycle, BTC is in its accumulation phase and within that process it breaks key Fibonacci levels (towards the All Time Highs (ATH)), which typically are Resistances.

The current key Fib level is the 0.786. As seen on the chart (1M time-frame), after every Monthly Candle closing above the 0.786 Fibonacci, then that level becomes a Support on the next candle and is never touched on those that follow.

On the current 1M candle (November 2020), Bitcoin is well above the 0.786 Fib and it remains to be seen if the month closes above it. If it does, then this Fib should turn into the Support.

** The Accumulation Channel **
In addition to the above and as a reference to the accumulation phase I mention above, it appears that this takes place within a Channel (blue displayed on the chart). Every candle that closes above this Channel has historically been a massive one and is what starts the parabolic (final) phase of BTC's Bull Cycle. Typically that candle doesn't come much later than the 0.786 Fib monthly closing. So keep an eye we may not be far off from such a massive bullish candle and of course with the accumulation phase being over by that time, good luck catching Bitcoin on the way up.

So what do you think about these new dynamics I've presented? Will 0.786 turn into the cyclical Support if we close the month above it? Are we closer to a parabolic run than most think? Feel free to share your work and let me know in the comments section!


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