Who (or what) is really responsible for Bitcoin price fluctuations? :: InvestMacro


Bitcoin has lost three-quarters of its value since November. Market fundamentals have lost control of their direction. But there was something else at the wheel the whole time.

by Elliot Wave International

I’m not ashamed to admit that I have the technological savvy of Eggo pies. So, when my computer went off the other day, I called the IT department at work. The tech wizard on the other end showed me a webpage where I had to click on its text box: “Agree to Control”. From that point on, the IT guy was able to hack into my laptop, find the source of the bug, and fix the problem.

While I sat there watching the cursor move around the screen on its own, clicking tab after tab as if forcefully suspicious,

“Holy moly, this is the virtual screen share of mainstream financial wisdom.”

In short this way: external forces known as “market fundamentals” are managing prices from afar. Positive fundamentals cause the price “indicator” to rise, while negative news and events lead to a sell-off. And investors? They have no choice but to “consent” to this outside control.

At least, that’s how it’s supposed to work.


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In fact, this news-driven model of market behavior is far from perfect. Markets regularly ignore ‘basics’ like Kardashian for pay-as-you-go – and move in exactly the opposite way.

Take, for example, an unknown cryptocurrency (if you were born yesterday) called Bitcoin. Last October – early November, Bitcoin hit a meteoric rise to record highs. And according to famous analysts, the “fundamentals” that control Bitcoin have been heading far higher!

Here, this news from that time is bringing back the rose-colored bitcoin glasses:

Safer Than The Ultimate Safe Haven, from Republic World on October 12:

“Investors Prefer Bitcoin To Gold As A Better Inflation Hedge: JPMorgan Chase.”

Bitcoin’s ability to recover despite China’s ban on cryptocurrency transactions indicates “one of the most bullish signals ever.”

“Nearly 50% of the computing power (called the hash rate) of the bitcoin blockchain pulled the plug, packaged it, and moved to another country within a few months. And no one noticed! It points to an incredibly resilient system.”

From MarketWatch on October 18:

“Everything is about to start unfolding now and we’ve seen it before. We know the pattern… October, November, December, January, February and March will be the point where it is almost impossible to lose money by owning anything.”

And from CNBC on November 1, a crypto expert mentioned a host of bullish forces — “super-progressive management,” “clarity of regularity,” “congressional support,” and “Bitcoin mining moving to the U.S. ‘, and ‘Fears Bypass China’s Campaign’ – Bitcoin Set to Support… Indefinitely!

However, despite the most bullish fundamental signals in Bitcoin history and the “impossibility” of a loss – the crypto is down 74.5% from an intraday high of 69,000 on November 10, to an intraday low of 17567.45 on June 19.

How is that?

Here’s the answer: Despite what mainstream experts might say, the “fundamentals” haven’t lost control of Bitcoin. They didn’t have that control to begin with.

The Elliott Wave Principle provides this answer to what it did: investor psychology, which unfolds in the form of Elliott Wave patterns directly on market price charts. And on October 27, 2021, we have Rolling separation Presented a special video episode on Bitcoin. In it, editor Jeffrey Kennedy was able to categorize price action as a B-wave uptrend too mature for a larger extended flat.

Meaning that the stage is set for an imminent collapse. From Jeffrey’s analysis on October 27:

“Under this scenario, we might go up a bit here and get another boost up to $70,000. At this point, going from around $70, we are ready for a drop of $50,000 per dollar all the way down to $20,000 coin.”

“This wave count fits and adheres to all rules and guidelines for wave theory.”

The following chart shows what followed: Bitcoin rose again to its peak on November 10, and then proceeded to collapse below the $20K region as predicted by Jeffrey’s bearish analysis.

At the moment, there is no more volatile market segment than cryptocurrencies. In Jeffrey Kennedy’s own words: “You’re swimming with sharks here and you have to be able to take huge risks and be fine when you’re playing in space.”

Join two experienced coaches on June 28 at 11am ET for a… One hour practical lesson On how to spot Elliott Wave settings in crypto – and how to take advantage of them. After just an hour, walk away equipped to discover and implement your cipher wave settings much better than before. Get your free seat now.



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