With the great readings we’ve had on the Bitcoin chart, I’ve had truly modest expectations, explains Jeff Greenblatt of Lucas Wave International.
That being said, the chart hit its lowest level since the bottom. The new thrust down wasn’t expected as some sources already thought the rally was over. I’m going to explain to you why it didn’t end and how it was precisely saved by the bell.
The bell came in the form of a golden spiral 161 window tendency off the actual bottom on a 180-minute chart. By itself, I do not believe the 161 vibration would be strong enough to turn it around. So, what finally did it?
I’m going to show you a tendency we haven’t discussed before, but if you get this, it should change the way you look at prices. Most people have no idea the price of any financial security is also a strange attractor. What does that mean? In terms of quantum physics and chaos theory, a strange attractor works as a magnet to the price action. It attracts and repels at the same time. Different numbers influence the price action in different ways. Look at the first short covering spike off the bottom. The high was 12990. To most people, that means absolutely nothing. Ignorance of the law does not excuse one from it. We’ve also read in the Old Testament that my people perish for a lack of knowledge. Here you won’t perish, but you will miss a lot of information and opportunity the market is gladly sharing with you.
When we get moves to price points in the 90s, it makes a steep retracement a higher probability. Get a move up to a 90 vibration, you may very well get a 90% retracement. We had it right here as the first drop off to retest the bottom was a 91% retracement. That looked like it might stand, but it didn’t. Consequently, we got a 92% retracement at the golden spiral 161 window. I know this sounds like a foreign language to most of you who look at lagging indicators or any indicator that is band heavy. Have you ever noticed a price ending in 00 turns right at the top of the hour? None of this is a coincidence.
It did not surprise me to see it go on Tuesday night with the cluster of the golden spiral and steep retracement methodology. It was saved by the bell and now seems a near lock to retest the descending channel line. All I’m going to say is if the low gets violated in a meaningful way, you can kiss Bitcoin goodbye as it will usher in a new bear era of uncertain duration.
Elsewhere, the US Dollar remains in trouble as it can never seem to breach that midline. This time from the 62-day high which was 10dg on the Gann calendar, last week’s attempt to prop it up only got it as far as the 72dg day on the Gann calendar which made it a 62dg move. Someone continues to work at propping it up even as it’s had one exceptionally good Kairos reading after another. Sitting at intermediate level support, this one is also very close to entering the dangerous phase of a bear market.
Finally, I had a good look at the BKX which is now 6 days off its high. The bars on the daily look benign enough, but when I look at the weekly chart, I see a 61 golden spiral harmonic which could lead to a bigger correction which could impact the entire market. Its 61 weeks up which by itself isn’t the sell signal. Look at the biggest pullback early on. Wasn’t it also a 62% retracement? I’ve shown you numerous times how the replication of the same numbers in different ways is very significant. This one could lead to something more important even as its already given us a reaction. This rally phase stayed in the weaker side of the channel and the first indication of real trouble will be if and when the action completely falls out of the channel.
Banking isn’t the only index in trouble. Have you seen Transports lately? I didn’t put this one up today, but its already made a left turn lower and hit a new relative low on Wednesday since the high on May 10. It has the look of something that wants to go lower.
Its early June, markets are in the early stages of this divergence. Sometimes it takes a while for a divergence to fully play out. We have all summer to see how it manifests. That being said, if the September graveyard for stocks activates this year, the trouble could be starting right here.
For more information about Jeff Greenblatt, visit Lucaswaveinternational.com.