Bitcoin - A huge move is about to occur - Pi cycle theory

But what direction? On balance of probability by the 1-day chart (below), it is an upside move. A huge move by December 21st - 23rd latest.

How do I know?

It is all down to the one trend line highlighted in blue on the above weekly chart. Now there are trend lines and there are trend lines. What makes one trend line more important than another? Confluence. And more important still? Confluence over an extended period of time. And more important that all of that.. read on.

On the weekly chart there is 8.61 year old trend line in the logarithmic view. It is significant, look left. Any confirmation of support or resistance was followed by a HUGE move in price action, whichever direction.

Congratulations to you if you’ve already clocked on to that number 8.61, it jumped out me and I nearly fell off my proverbial chair (WW stands at his desk!). There are times I really don’t know what came first, the chicken or the egg. I’m such a data nerd - sitting comfortably?

Does anyone know what this is?

8.615384615 * 365.25 = 3146.76923062

No matter if not. Look at the solution and compare with the number of days that have come to pass since this trend line began. Oh I’m not done yet..

8.61 - where have I seen that before, pi cycle theory of course.

I encourage you to read up here about the theory and the discoveries of the American economist Martin Armstrong:

www.traderslog.com/pi-cycle-theory

Here’s a snippet:

>>>>

What did Armstrong discover and why did it lead to his harsh, unjustified and third-world style punishment? Having actively advised capital through the 1970s and early 1980s, Armstrong had witnessed several boom and bust cycles. Commodities, currencies, metals, and even nations had experienced extreme turbulence during this period. As a student of not only economics but also history, he studied each of the 26 panic events that occurred from 1683 to 1907. By his calculations, that meant that an event occurred every 8.615384615 years. What was the significance of this number? Most people would write it off as a political or nature driven event but was it possible that those catalysts were also influenced by cycles?

At this point Armstrong was certain that there was a pattern behind these cycles even though he was uncertain of its nature. He is famous for saying, “Identify the cycle…..Sort out the why later.” A breakthrough came when he multiplied the average time between occurrences by the exact number of days in a year. Due to the calendar impact of leap year that number is 365.25. The equation was:

8.615384615 * 365.25 = 3146.76923062

This number jumped off the page immediately. It was exactly Pi * 1,000. Pi is a very significant number and throughout the course of history it has emerged in many aspects of human life. The number is a mathematical constant and represents the ratio of a circle’s circumference to its diameter. The history of this strange number sequence dates back as far as 2,000BC. Several instances of its use are recorded in ancient Egyptian history.

If Pi was so relevant in geometric structures, especially circles, then logically there was a connection to these cycles. Armstrong determined that the cycle would include two 4.3 year parts. Each of those parts would include a 2.15 year rise to a crest and similar 2.15 year return to the mean. Six 8.6 year cycles would form a larger 51.6 year cycle connecting with Kondratiev’s findings earlier that century. Then, six 51.6 year cycles connect to form a 309.6 year super cycle. With these findings Armstrong correctly predicted the 1987 US stock market crash, the 1989 all-time Nikkei high, the Russian sovereign debt crisis and the peak of the housing boom.

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Hope you’re as stunned as I was upon realising this. We’re on the verge of a significant event.

WW



Daily chart;

Trade active:

There she goes. 1st resistance around $53-54k area.

Comment:

The 2-day chart now printing a ‘good buy’ signal. Look left.

There’s two things to observe here:

1) The yellow dotted line. It is the lower pi cycle support 111-day SMA. The relationship between price action and this SMA is fascinating - look left. The 2013 bull market is shown (bottom) as an example.

2) The red line. That’s the 2-day / 200-day SMA (actually 400 days of data), which is around $45.5k and climbing. I mention this SMA for one very important reason. Price action has never broken it in a bull market. Never. In fact it is very unusual for price action to be this close to this SMA expect in times of extreme fear.

Now a warning. If the lower pi cycle SMA is broken and becomes resistance, we’re in a whole new situation. Price action remains in a downtrend for 6-months to a year. That’s not my opinion that’s just a fact of the chart. In that situation, well I hope it does not happen. But if it does it does and an appraisal of the situation can be made then.

The best closing price for December 30th on this chart wherever you are is $48.2k.

Happy New Year!

WW

2013 -

Comment:

Price action prints a higher low!
Probability of a huge upside move has just increased.

Comment:

There you go, told you a big move was coming.

Just kidding. That wasn't the big move. The big move is what happens in the weeks ahead. Go over and listen to Peter with yesterday's (Jan 5th) YouTube upload.

Unlike other Youtube videos I really admire Peter's Technical analysis in consideration with other asset classes and trends.

www.youtube.com/watch?v=JocmiQA5...

Trade active:

The big move I alluded to in the above idea is nearing. We're at the 11th hour. Will publish in a separate idea as to the nature of this move coming, it's all good. Meanwhile here's a preview:

Trade active:

The majority of market participants have no idea what is about to happen. Will take everyone be surprise expect for you followers ;)

Will publish a separate idea on the 3-day day chart below...