The phrase (history repeats itself) is a well-known principle among those who are interested in the financial market, right?
Yes, indeed while some analysts, investors, and traders believe in the time cycles of the financial markets, considering the time factor very important to support their thoughts and decisions, the majority believes in the above-mentioned principle.
Having said that, we will present a very simple chart for Bitcoin to our readers today that may encourage us to search more aiming to know more about time cycles and even seasonality in the financial market.
Daily Chart of Bitcoin:
The daily chart of Bitcoin below shows that bears have sold the most famous cryptocurrency following what happened in the congress as US lawmakers hammered Facebook exec over Libra's threat to privacy. The selling wave started after putting in the lower high of $13250.
Yesterday, Bitcoin started to consolidate after finding good support in the $9100 territories where it jumped to flirt with $10k once again by the end of the day.
Is it a preparation to create a new leg higher?
The confirmation will come once Bitcoin breaches through $10500, as a break above that level will ease the path towards $11750 again and may prove that history may repeat itself via building a third technical base in 2019 particularly after being carried above SMS100!
Note that, the key for placing a new high in 2019 is $13700 zone.
To know more about time cycles, read my educational article by clicking here.