Let’s start by updating this rather successful identification of a low on this daily cumulative average chart from our weekly report dated December 3, 2017:

As expected, the market rallied strongly (almost doubling its value) from this interim low on November 30, 2017 at $9,117.55.

Here is the updated version:

The recent low of December 22 reversed on a 5/4 multiple of its cumulative average from the preceding low of November 13, 2017 at $5,664.87 (which is on a 3/4 multiple from its preceding low).

Interestingly, these two fractions add to 2, which is the preceding low’s multiple. Therefore, the recent low is perfectly harmonic with the entire series of lows, indicating that Bitcoin may have found its low.

The following analysis also reveals a relationship between the series of low, but geometrically:

(The two red arrows show the all-time high and a secondary top identified with the main circle (solid black). In addition, the large faded circle connecting the two initial lows (both marked ‘L’) proves perfect support for the subsequent low. This indicates that this geometric set-up is indeed connected to market movement and should be further developed.)

A Fibonacci sequence of the 12ths concentric circles is present, and confirms the bullish implications of the preceding analysis, as well as indicates support for the current market on the 5th concentric circle, at around $13,900.

On the downside, if current support does not hold, then lower support on the 4/12 concentric circle (brown dashed) of $12,900 – $13,200 is next. Although the number 4 is not in the Fibonacci sequence, it does represent the ‘half-level’ between 3 & 5, along with 6.5 (between 5 & 8). Notice previous important price action at these circles (green arrows).