Bitcoin Attacks Extreme Upside Target;
Corroborates Outlook for Aug. – Dec. 2018.
07/30/18 INSIIDE Track – The Extremes:
“The majority of markets have entered a pivotal time, based on the synergy of multiple indicators and cycles…
Life at the Extremes
One more factor also has to do with another important time/price indicator that measures a market stretching to an extreme and waning of an impending (within the ensuing 1 – 3 periods of time) top or bottom. That involves the implementation of the LHR/HLS indicator.
That indicator is calculated by taking the difference between Period #2’s (the most recent day, week, month, etc.) High and Period #1’s (the previous day, week, month, etc.) Low and adding that difference to Period 2’s High. (The opposite would be done for the HLS indicator.) See diagram on page 2.
Since this indicator measures an extreme, it is only tested 10 – 20% of the time. So, it is not something that should be expected every day or week. When it does apply, and is tested (and holds), the LHR/HLS reveals a lot about what to expect in the ensuing periods as a trend culminates.
Key examples of this tool, discussed in the following pages, are reinforcing the significance of 3Q 2018…
In late-June, Bitcoin fulfilled its primary 3 – 6 month downside target – bottoming right at the level of its Nov. 12 ’17 low (4th wave of lesser degree support) – and projected a new intermediate rally. Ideally, that would last about the same duration as the other two 2018 rallies – 27 – 28 days.
The extreme upside target for July 2018 (monthly LHR at 8,482) provided some additional guidance.”
Bitcoin did exceed 7,800 and surged right to its monthly LHR (extreme upside monthly target) at 8,482.
This surge from late-June reinforces the significance of the 5,500 – 5,800 support range that is likely to hold through 3Q 2018. If that is ultimately broken, ~3,200 becomes the next level of support. Bitcoin’s ~21-Week (144-day) low – low – low Cycle Progression should produce one more important low in late-Nov. 2018. Negative cycles re-emerge in Sept. – Nov. ’18.
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.