So far, the Mirrored Foldback Pattern has been playing out very well. The swings and the ratios of those swings have proven to follow the structure surprisingly accurately. So how does that affect our current trade over the weekend and looking forward?
Wut is it?
The dark vertical lines represent the 'Mirrored Foldback' - which is just the past price action flipped and then repeated. What we are looking for is not the exact price or ratios to play out, we're looking for the same kinds of swings around the same time, the shape and pattern should also be fairly similar, but it does not have to be. This is the daily chart we are looking at and according to the Mirrored Foldback, there are 3 to 4 down days create a massive swing lower, which is what we are experiencing right now. After that, there is a period of consolidation that precedes a massive rally higher. A question might be asked: If the Mirrored Foldback doesn't show a lower low, if there is one that is formed with the current price action, does that mean the pattern is invalidated? The answer is no. Again, we are looking for primarily for the same swings to happen at the same time with similar ratios and structures/patterns. It is very possible for a new low to be created here and still remain within the pattern. However, price is sitting right on a support zone of time and price: Uptrend line, vertical pivot in time (red vertical line) and the green Gann arc.
What does this all mean? And what about Trump?
While there is a strong probability of lower prices below $6,000, there is a large amount of support to suggest prices remain above $6,000. Now here's the part about Trump: he is probably going to be the President that created the SEC Commission to approve the first Bitcoin ETF. There are 5 total Commissioners at the SEC; 1 Chairman and 4 others. For the approval of any of the Bitcoin ETFs to be approved by those 5, they need a majority. And the majority is kind of... in the bag. The 5th position at the SEC was just confirmed recently in August - and he's a Trump appointee who is also a pro Bitcoin/crypto guy. The Chairman is a Trump appointee. Hestor Pierce, the Commissioner to railed against the SEC staff who denied all the ETFs, is a Trump appointee. 4 out of 5 of those SEC Commissioners are Trump nominees. Only 1 is a known crypto-friend. But the others are anti-big-government, anti-regulatory hawks. Hell, the Chairman is pushing for new regulations to make sure ma and pa investors (you and me) can participate in IPOs - something only the super wealthy and super connected have been able to do. These guys and gals are all about leveling the playing field and keeping Government away from telling people where and what they can do with their money