The image you are seeing is a rare (only because not many people use it) and old form of technical analysis from WD Gann's work: the Square of 52. The Square of 52 is a 52 week time cycle that begins at an important high or low, in this case the all time high of Bitcoin. What we have here is the exact center being traded, and it's at the bottom of a downtrend.
More than that, the mid point in the time cycle of the Square is also a 180-day Gann cycle. According to Gann, the 180-day cycle has these behaviors:
180 Day Cycle
- Is the next most powerful cycle after 90
- High probability of support or resistance
- 180 days up or down will usually start a countertrend movement or reverse the trend
- 180 days from all significant highs or lows must be watched for trend changes
- Against extreme momentum and/or pitch, can go 192 days.
What we may observe is what the great analyst Michael S. Jenkins called a 'Mirrored Foldback'. If it doesn't trade it in structure, then it would trade it in shape, in this case the triangle. A foldback is a mirrored move in the structure that repeats its prior move. This is not an anamoly of the market, but a constant that we can see throught past price history.
Mirrored Foldback in price structure.
Mirrored Foldback in geometry
