Skip to content

Blocksmith Says: Near Term Bottoming for Crypto

Table of Contents

Gold daily here clearly shows price bottoming out of at least a 40-day cycle low and perhaps even a much longer 20-week cycle low. How do we know this?

Because of the principle of harmonicity in cycles theory. There are two 40-day cycles in the 80-day cycle, and two 80-day cycles in the twenty week. I count four 40 day semi-circle representations which implies the 20 week. The reason it’s important to understand the magnitude of a cycle trough is because very commonly (but not always) the wavelength of the cycle is proportional to its amplitude or power. Longer cycle troughs create bigger moves.

A hundred or so points higher is the top of the March downtrend channel, we call this the channel return line. This is where we see if a new grander uptrend is underway, ie. If price breaks out. You should, at the very minimum, expect a sharpish pullback here, but it is what happens after that that counts. Crypto has not quite caught up to the move in Gold yet but the preferred view remains for a near-term bottoming out and advance.

Latest

Is It Altcoin Season Yet?

Is It Altcoin Season Yet?

Understanding and leveraging narratives can be crucial for investors looking to navigate the volatile and speculative nature of altcoin seasons.