Bitcoin: Let’s Put 2 Heart-Pounding Price Drops into Perspective
Here’s what our “preferred” Elliott wave count said on Feb. 5, 2021
by Bob Stokes
Updated: February 23, 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, published on Feb. 5, 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.
Follow the link below to get the cryptocurrency insights that you need.
Get the Bottom Line for U.S., Asian-Pacific and European Financial Markets -- Fast
You've heard people say, "Just give me the bottom line" ...
... Our Global Market Perspective does just that with each and every monthly issue -- and it delivers an in-depth explanation as to the why.
"Why" includes Elliott wave analysis, investor psychology and applicable time-tested indicators that our analysts use.
Embrace opportunities and avoid risks as you prepare for key turns in global stock markets, cryptocurrencies, forex, metals, rates, energy and much more.
Get our global analysts' bottom line on key markets from around the world as you follow the link below.
Commodity prices have taken a tumble during the past several days. A financial website says the decline is due to the "China crackdown" and "rising dollar." Yet, Elliott wave analysis foretold of the price drop when commodities were still rallying. Take a look at this chart.
See the Trader’s Classroom forecast and Elliott wave pattern that anticipated a rally which saw US Steel nearly double in price.
Ever heard of the acronym FOBI? It was coined here at Elliott Wave International and stands for the "fear of being in." Yes, just the opposite of the better-known acronym FOMO (fear of missing out). Here's an explanation.