BTC/USD: A Study Through Time Cycles
Hello Traders 👋
This is a small attempt to analyze the BTC/USD through the lens of historical time cycles.
I can observe, on this monthly log chart, a 4 year correction cycle -- 2014, 2018 and now in 2022
Previous corrections:
2014
Dip = -86%
2018
Dip = -84%
Current Correction:
2022
Dip so far = -74%
The previous bear markets ended with a dip of around 80%. This time it made a double top in the later half of 2021 and has already slashed 74% from the top so far. Does that mean there is still room for 5-10% correction?
If we look at the chart June 2019 highs were at around 13880 levels. So this area acted as resistance. This area also coincides with our 80% correction cycle which is at around 13800. This area of resistance could become a potential support zone in case of further dip.
But before reaching at any final conclusion, one has to observe the price action at above mentioned zones on a lower timeframe, say daily. The price often builds a horizontal cause (accumulation) before revealing vertical results. So its better to wait for some accumulation before getting into buy mode.
I hope this was helpful. Thanks for reading 👍
This is a small attempt to analyze the BTC/USD through the lens of historical time cycles.
I can observe, on this monthly log chart, a 4 year correction cycle -- 2014, 2018 and now in 2022
Previous corrections:
2014
Dip = -86%
2018
Dip = -84%
Current Correction:
2022
Dip so far = -74%
The previous bear markets ended with a dip of around 80%. This time it made a double top in the later half of 2021 and has already slashed 74% from the top so far. Does that mean there is still room for 5-10% correction?
If we look at the chart June 2019 highs were at around 13880 levels. So this area acted as resistance. This area also coincides with our 80% correction cycle which is at around 13800. This area of resistance could become a potential support zone in case of further dip.
But before reaching at any final conclusion, one has to observe the price action at above mentioned zones on a lower timeframe, say daily. The price often builds a horizontal cause (accumulation) before revealing vertical results. So its better to wait for some accumulation before getting into buy mode.
I hope this was helpful. Thanks for reading 👍
JJ Singh
Trader/Investor
Moderator, TradingView
🚀Join t.me/jjsingh_2020 ,
A Free Education channel
🚀Tweet at twitter.com/JaySingh_2020
Trader/Investor
Moderator, TradingView
🚀Join t.me/jjsingh_2020 ,
A Free Education channel
🚀Tweet at twitter.com/JaySingh_2020
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