Point and Figure – A Fulcrum Bottom

A fulcrum in Point-and-Figure lingo basically means a double bottom. I’ve been anticipating a change in trend for a while now. Price has recently developed a local double bottom and price is currently testing for the 4th time what is ostensibly strong resistance at 7.7k. Notice how price has broken above the downward trend line. This suggest that the downtrend is retarding. This is confirmed when price reaches 7.8k. Given the local double bottom (yellow box) and the development of a fulcrum pattern, I believe Bitcoin has reached a bottom. I will be going long and buying the dips as soon as a change in trend is confirmed; when price hits 7.8k.

The yellow box shows the double local bottom.

I began to write this blog post on the 6th of January 2020. Today is the 7th January 2020 and price has broken above resistance and is currently trading at 7.9k.

As anticipated, a change in trend, from downwards to upwards, has now occurred. I had a limit-buy order at 7.8k. I will continue to buy the dips at local supports and ride this trend until my price objectives have been reached. Counts in Point-and-Figure are price objectives calculated in several ways which I will discuss in a different post. I have calculated two counts: the first count is at 9k, the second count is at 12.2k. Check this out, the first count towards 9k just so happens to be at the same level where previous support (now resistance) developed. Coincidence ? I think not !

Update: January 8th

Price shooting towards 9k

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