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Bitcoin: Let's Put 2 Heart-Pounding Price Drops into Perspective

Currencies / Bitcoin Mar 02, 2021 - 11:51 AM GMT

By: EWI

Currencies

Here's what our "preferred" Elliott wave count said on Feb. 5, 2021

When financial historians discuss past manias, many of them point to the South Sea Company of the early 1700s as a classic example.

The enthusiasm to buy a piece of the action was so great that even Sir Isaac Newton became in investor.

He, along with many others, eventually lost big time when the South Sea Company Bubble burst.


And, in late January, it looked like the modern-day mania surrounding the cryptocurrency Bitcoin had burst too, at least according to one major financial magazine (Forbes, Jan. 27). Here's the headline:

Bitcoin Has Crashed. Is This The End?

That was in response to Bitcoin's swift slide from near $42,000 to below $30,000. Well, it turned out that this heart-pounding downturn in price was only temporary.

This was no surprise to Elliott Wave International's cryptocurrency analyst Tony Carrion. Indeed, in his video in our monthly Global Market Perspective (a monthly publication which covers 50-plus markets worldwide), he showed this chart and said:

Our preferred [Elliott wave] count is that [Bitcoin] is advancing within the subwaves of a [larger up wave]. … The wave IV (circle green) correction played out for most of January. Wave evidence suggests that the correction ended on Jan. 22.

As you probably know, the cryptocurrency has since climbed as high as $58,000. That high price was hit in the morning of Feb. 22 and was followed by another heart-pounding price drop. As of this writing, the Bitcoin's price has plummeted nearly 13%.

Is this another temporary correction -- or, finally, the start of an all-out collapse?

Now is the time to learn what Elliott wave analysis suggests is next after this most recent price drop.

If you’d like to gain insights into Elliott wave analysis, you can do so by reading the Wall Street classic book, Elliott Wave Principle: Key to Market Behavior, by Frost & Prechter. Here’s a quote:

Despite the fact that many analysts do not treat it as such, the Wave Principle is by all means an objective study, or as Collins put it, “a disciplined form of technical analysis.” Bolton used to say that one of the hardest things he had to learn was to believe what he saw. If you do not believe what you see, you are likely to read into your analysis what you think should be there for some other reasons. At this point, your count becomes subjective and worthless.

Get more insights into the Wave Principle. You see, the online version of this Wall Street classic is available to you free after you join Club EWI, which is the world’s largest Elliott wave educational community. Club EWI membership is also free.

Get the ball rolling by following this link: Elliott Wave Principle: Key to Market Behavior – free and unlimited access.

This article was syndicated by Elliott Wave International and was originally published under the headline Bitcoin: Let's Put 2 Heart-Pounding Price Drops into Perspective. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.


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