William Delbert Gann (1878-1955), an American trader, developed his innovative analytical methods at the beginning of the 20th century. His ideas combine mathematics, astronomical observations and historical analysis of market patterns in a unique way. Gann’s cycle theory is based on the assumption that markets, like many other areas of life, are cyclical.
Price increases and decreases follow recurring patterns that can be understood when the right historical data is available. According to WD Gann’s theory, the movement of the exchange rate is determined by three main factors: time, price, and their geometric relationships. This approach is perfectly applicable to the bitcoin market, where price movements are often driven by historical patterns and psychological factors.
Gann angles examine the relationship between bitcoin’s price and changes over time. For example, a 1×1 angle shows that the price is rising by one unit during a given time interval. Such angles make it easier to predict when the price may reach critical levels, such as a support or resistance zone.
Bitcoin’s four-year halving cycle is almost a textbook example of financial cycles. Based on Gann’s theory, this cycle can be divided into four stages: rising phase (bull market), peak (exchange rate reaches maximum), correction phase (bear market) and consolidation stage (accumulation). By analyzing past examples from previous halvings in 2012, 2016 and 2020 using Gann’s method we can see how these stages unfolded throughout each cycle with remarkable accuracy!
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<p>The post Unlocking Bitcoin Cycles: Applying WD Gann’s Financial Cycle Theory to Crypto Markets first appeared on CoinBuzzFeed.</p>
