Cycles exist in nature. There’s the daily cycle, sunrise to sunset, oscillating between night and day every 24 hours. There’s the moon cycle, full moon to new moon, and back to full moon. A constant precise cycle that can be calculated out centuries into the future. There’s the seasonal cycles, Winter, Spring, Summer and Fall. Wash. Rise. Repeat.
Cycles are everywhere, and are simply a part of life.
Regarding Bitcoin’s price this year, a very distinct, very interesting cycle has appeared on the charts. Starting in January, the 6th of every month has either been a high or a low. January 6 was a high. February 6 was a low. March 6 was a high. April 6 was a low. May 6 was a high. Have a look at Bitcoin’s price chart for the year and the cycle is blatantly obvious:
After looking at the chart, some questions come to mind. Will June 6 be a low? The short term price trend of the past couple of weeks certainly seems to indicate that it very likely could be. If so, will July 6 be a high?
How long will this very precise cycle last? Well, the obvious answer is that the cycle will last until it no longer does. These types of situations tend to disappear once they gain some widespread recognition.
Lastly, the burning question that cannot be answered with certainty: Is this a natural cycle, or was it coordinated? We don’t know for certain, and can only speculate. We do know, though, that algorithms control most markets. On the traditional stock markets, high-frequency trading accounts for more than 80% of all trading activity. This is pre-programmed, algorithmic trading that is done entirely by computers.
The math Ph.D’s who are hired to write these trading algorithms are typically bound by non-compete and non-disclosure agreements. The exact details are proprietary information that just isn’t revealed.
Whether this price cycle of the 6th of the month being a turning point for the direction of Bitcoin prices was something that just naturally occurred, or whether it was a coordinated effort of algorithms in sync, we will likely never know. You’ll have to speculate to come up with your own conclusion.