Will China’s Crackdown Send Bitcoin’s Price Tumbling?
July 2: “Bitcoin [is] at or near the end of [an Elliott wave] correction”
by Bob Stokes
Updated: September 28, 2021
In early September, bitcoin hit a price level near $52,000 -- however, since then, the price has trended lower.
Indeed, on September 24 alone, the price of the cryptocurrency fell 5%.
The financial press pinpointed a supposed "cause":
Bitcoin and ether slide as China intensifies crackdown on cryptocurrencies
A China crackdown on cryptocurrencies seems like a logical "reason" for bitcoin's 5% slide, however, take a look at this next headline from the same financial website:
China's war on bitcoin just hit a new level with its latest crypto crackdown
You might say, "OK, it says pretty much the same thing as the first headline, what's the point?"
The point is: That second headline published on July 7 -- just two weeks before bitcoin hit a bottom near $29,000 and then rose to that price near $52,000 in early September.
In other words, China's stern measures against cryptocurrencies are nothing new and bitcoin prices have both risen and fallen during the crackdown.
Instead of relying on headlines, Elliott Wave International's head crypto analyst Tony Carrion uses the Elliott wave model to forecast cryptocurrencies.
Here's what he said in our July 2 Global Market Perspective:
Our preferred count has been to consider the price action since the December 2018 low to be the subwaves of a [sizeable Elliott wave] advance.
Bitcoin [is] at or near the end of [an Elliott wave] correction.
In other words, Tony was anticipating a rebound in bitcoin's price, even as the majority of investors were bearish.
That's the beauty of the Elliott wave model -- it anticipates price turns -- no matter what the news or prevailing sentiment.
You may have heard about that recent University of Chicago survey that said more than 1 in 10 people in the U.S. traded cryptocurrencies in the past year. Yeah, a lot of people.
No doubt, many of them are influenced by cryptocurrency headlines and forecasts that range from the wildly bullish (at least one headline said bitcoin was headed to $500,000) to the extremely bearish (more than one prognosticator has said bitcoin is headed to zero).
If you're among the many cryptocurrency traders, you owe it to yourself to get the objectivity of Elliott wave analysis.
Our new Global Market Perspective will publish October 1.
Follow the link below so you can be among the first to read it.
What Makes the Global Financial World Go ‘Round?
Simply put, it's confidence.
Confidence in the financial system. Confidence in markets. Confidence in the future, etc.
It seems too simple. It seems like news and events would govern the world's financial scene. Yet, consider that investors often brush aside bad news when they are confident. Surely, you've noticed -- bad news breaks and most major worldwide markets soar.
On the other hand, a good piece of news cannot save markets from cratering when investors have lost confidence.
Only waves of optimism and pessimism drive widely traded global financial markets. Investor psychology is the same -- everywhere.
These waves of optimism and pessimism repeat -- at all sizes of trend -- hence, they are predictable, according to the Elliott wave model.
Learn what the Elliott wave model anticipates next for the global market(s) in which you are interested.
You don't want to miss timely opportunities. On the other hand, keep financial safety uppermost in your mind at this juncture.
Review our new Global Market Perspective which will publish October 1 for actionable insights by following the subscriber link below.
Global Market Perspective
Gives you clear and actionable analysis and forecasts for the world’s major financial markets.
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