Report For Week Ending Dec. 9: Geometry Of Global Financial Markets

HIGHLIGHTS

Bitcoin: Hits a significant upside target, but rally may still have legs.

US Dollar: Clears key resistance and heading higher, following bounce off key circle support.

Gold: Next key area to watch for key support is around $1,215 to $1,201.

BITCOIN (XBT/USD)

Bitcoin essentially hits target discussed last week, seen in the parabolic structure.

A rally with conviction into new high territory will lead to a target of $24,340 on December 13. This may be realistic when considering the parabolic nature of the larger uptrend.

Key near-term support levels seen in the geometry.

Bitcoin saw another dramatic week higher last week, topping out at $16,613.50 (Optuma price. Due to volatility data providers have recorded a number of different high prices for the week.) and completing the inverted move predicted in the weekly parabolic structure analysis we published on December 1, 2017. Here is the updated weekly chart:

1 BITCOIN WEEKLY PC UPDATED WITH TARGET REACHED.png

The market is expected to drop to a related support curve below, within the parabolic structure. Curves 2.5 and 2 should provide the more significant potential support zones on a drop, to around $14,100 and $11,270, respectively:

2 BITCOIN WEEKLY PC WITH SUPPORT.png

Turning now to a daily chart for greater detail, the vector concentric circles analysis provides an accurate support curve identifying the preceding two lows over the past two weeks, on November 24 and 30. This coming Monday’s support level is at $12,850, and leads up to Thursday’s support at the circle intersection of $14,300. That roughly aligns with weekly support of $14,100 that was seen on the preceding daily chart. When two or methods identify a similar price level, the price area should be given extra consideration.

3 BITCOIN DAILY VCC SUPPORT CURVE WITH TIMING POINTS.png

The vector concentric circles are formed from setting the downtrend vector at 45o (marked H-L). The support curve is formed by a succession of fractionally related angles moving forward (and backwards if needed) by a specific pattern of circles. In this example, a 1/5 angle (1/5 of 90o, or 18o) is drawn from the center outward by three full circles (+3 at a time), increasing by 1/5 each time as well.

Note the highs at A & B, directly above the support curve intersecting concentric circles 1.5 & 3. The current potential top at C is also above the intersection below, and this observation strengthens the likelihood of at least a minor top forming with a subsequent drop back down to some level of support.