If you trade the Forex markets, then you are aware of the equally impressive and ludicrous move that the US Dollar has had this past week. July is a slow and extremely low volume participation month, to begin with, so it's easy to set up 'traps' for the retail trading market. This week has been a phenomenal trap laid out in a very expansive and lengthy week long trap. For cryptocurrencies, this is a big deal because it is becoming more and more frequent for Bitcoin and other cryptocurrencies to respond to the strength of the dollar. That is going to change.
They DXY
The DXY, or thedollar index, is a 'basket' of currencies against the dollar. The make up is this:
Euro (EUR), 57.6% weight.
Japanese yen (JPY) 13.6% weight.
Pound sterling (GBP), 11.9% weight.
Canadian dollar (CAD), 9.1% weight.
Swedish krona (SEK), 4.2% weight.
Swiss franc (CHF) 3.6% weight.
Now, there has been significant annoyance over how this is balanced and that more currencies should be added to the basket. Regardless - the Euro, Yen and Pound represent the greatest majority of all foreign currencies traded. Basically when you look at the DXY, you can get a good vibe of how the EURUSD pair will move and how the USDJPY will move. We can see that it has moved up quite a bit over the past 6 months.
Go ahead and look at any Forex pair, Futures market or Index like the SPY. You will find a great many of the yearly highs and lows can be found around the dates between July 15th and July 21st (Gann wrote about this and specifically mentioned it). In Financial Astrology, an analyst looks for the important angles between planets that are important not only to specific charts/instruments but are relevant to a broad spectrum of markets. One of those angles (aspects) ends this Friday. Let's look again at the DXY for that analysis and why we should expect a significant drop in the US Dollar for at least 45-90 days.
- Once a year Pluto is 180-degrees from the Sun, these are often market highs/lows and/or important swing highs and lows.
- A New Moon Phase begins - this is a big deal because not only does the New Moon Phase coincide with the Pluto-Sun aspect, but New Moons are usually indicative of strong bearish pressure over the next 15-16 days, especially if the DXY -0.13% is at a swing high.
- Jupiter exited its retrograde cycle on the 10th of June.
- Gann's 144 day cycle completed today - POWERFUL reversal when in a trend.
- Gann talked about July 15th - July 21st is a time period where you can see yearly highs and lows being found and market reversing.
- Not drawn is the .882 Fib level that price was rejected at.
How does this apply to Cryptocurrencies?
If you are a currency trader, then you know how many USD pairs have faired - they've been down.
Gold
AUDUSD
GBPUSD
EURUSD
BTCUSD
As you can see, the correlative nature of the majority of these charts - purely from a fundamental perspective - is the strength of the Dollar. Now let's observe Bitcoin's chart.
Bitcoin
- Like every other financial instrument, this aqua column represent Sun Opposite Pluto. In addition we have a New Moon phase that started. And below is 270-degree Square of 9 angle as well as the harmonic line of Saturn ('wavy' red horizontal line).
- Ahead is something really cool. Venus enters Libra (pink column) along with a Full Moon phase and an eclipse.
Pluto Opposite Sun
This is an aspect that shows up at a great many swings highs and swing lows in every financial market. When we consider the year long down trend and then the appearance of this aspect near these Gann dates, we get the signal for a reversal. However, it should be a slightly muted move higher until we get into that Venus transiting Libra.
Venus enters Libra
This transit is a powerful one. With exception of 1 year, every year that Venus enters Libra we find a ramp up in price followed by a parabolic rise in value. Or, simply, the major expansion phase happens when Venus enters Libra. While the sample data for Bitcoin is stil relatively small compared to equities, futures or currencies, the positive expectency over the past 10-years of data is strong enough to consider the next Venus into Libra the big bull signal we want to see.