Cryptocurrency Trading: How Bitcoin’s 21 MARC Might Hold the Key! Bitcoin is Triggering New Round of Multi-Month Buy Signals & Could Surge in April!
Cryptocurrency Trading: How Bitcoin’s 21 MARC Might Hold the Key! Bitcoin is Triggering New Round of Multi-Month Buy Signals & Could Surge in April!
03/18/19 – The Bridge – Currency Wars & Cryptos II:
The Weekly Trend
The weekly trend is also neutral… but from an opposite perspective…
After bottoming in Dec. ‘18, Bitcoin quickly rallied and twice neutralized its weekly downtrend. In the ensuing months, it has neutralized that weekly downtrend multiple times.
However, it would not turn the weekly trend up until a weekly close above xxxx/BTC.
Considering that Bitcoin created a double top in late-Feb. – right around 4200/BTC – and pulled back, a rally back to 4200 would now increase the odds for acceleration through that resistance and to higher highs. That would likely prompt a weekly trend reversal (to up) at the same time.
There are multiple timing factors corroborating this outlook… and identifying when an accelerated advance is more likely:
— First, there is the ~8-Week Cycle that has been discussed in several previous articles.
The accompanying HCP diagram is a reprint from last year and shows how it played into the anticipated late-June ‘18 low. After that, three more lows were anticipated – with the third coming into play in mid-Dec. 2018.
Sure enough, Bitcoin bottomed in mid-Dec. ‘18!
…Since the Dec. 2018 bottom, Bitcoin has consolidated between ~3200 & ~4200/BTC – reinforcing those cycle lows.
— While Bitcoin has been bottoming, it has produced constructive signs with regard to its 21 MACs. On a daily basis, that channel turned positive in mid-Feb. and has been guiding Bitcoin higher ever since. However, the weekly 21 MAC is the key…
That channel has been trending lower and Bitcoin has been trading below it… until now. The weekly 21 Low MAC is at 3903 and Bitcoin has just given a daily close above that level. While a daily close above a weekly indicator does not prove anything, it is the first time Bitcoin has done this since early-Nov. ‘18.
— Equally important, and helping to hone the time for a potential accelerated advance, the inversely-correlated weekly 21 MARC will begin to plunge in April.
That presents the optimum time for Bitcoin to both turn the direction of the weekly 21 MAC higher and to rally from that new support (as long as Bitcoin has given a weekly close above the weekly 21 High MAC in late-March).
To give a couple examples of the inverse correlation between the two (21 MARC and price/21 MAC):
In early-Nov. ‘17, the weekly 21 MARC entered a period where it declined for 5 – 6 weeks. At the same time, Bitcoin and its 21 MAC entered a parabolic surge.
In early-Nov. ‘18, Bitcoin’s weekly 21 MARC bottomed and entered a 5-week surge. At the same time, the price of Bitcoin (and its 21 MAC) entered an accelerated decline.
With Bitcoin already entering the weekly 21 MAC, it increases the likelihood that the 21 MARC drop – in April 2019 – should spur a strong rally in price.”
Bitcoin is triggering a second round of buy signals that project a sharp rally beginning in late-March (or slightly sooner). In mid-Dec. 2018, Bitcoin reached its major, 6 – 12 month & 1 – 2 year downside target at ~3,200 as cycles were bottoming. That signaled a 3 – 6 month or longer bottom. It now has multiple indicators turning positive that project an accelerated advance in the coming weeks and months. Dollar cycles and indicators concur and pinpoint April as a pivotal time.
If Bitcoin can trigger one additional signal (by/in late-March), it would elevate this rally to the next higher level and project an advance into June/July 2019 – in opposition to Dollar cycles.
See Weekly Re-Lay & INSIIDE Track for additional analysis and/or trading strategies.