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.
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