Bitcoin Finds Support From Cumulative Average

By Scott Hathaway of Pattern to Profit, LLC

Geometric technical analysis of global financial markets • Jan 13, 2018 at 7:27 PM EST

Bitcoin bounces off support of its cumulative average, which should lead to a continuation of the bull trend into new high prices.

On Friday, January 12, Bitcoin (XBT/USD) found support at $12,854.57 from its cumulative average (blue) of closing prices. The cumulative average starts with the secondary low (L2) of $5,664.87 on November 13, 2017 (all prices from Optuma, as shown):

(Note the preceding lower low on December 22 of $11,179.30 is also identified by the squaring of the all-time high (H) with the average.)

The low L1 of $2,979 on September 15, 2017 is used for the start of the lower cumulative average (black).

Since the current market is perfectly aligning with the average:

Bitcoin is expected to return to its overall uptrend and reach new highs.
If instead Bitcoin breaks down below the blue line, currently at $12,900, then it is expected to reach the lower cumulative average (black), currently at $9,260.

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