Bitcoin Falls Because Of A 13th Century Mathematician
EWM Interactive | Jun 24, 2018 06:22AM ET
The price of Bitcoin, the largest cryptocurrency out there, just fell to its lowest level since the start of the year. The previous major low of $5920, registered in early-February, has finally been breached. BTC/USD is currently hovering around $5850, which brings its total loss for the week to 9.3%.
But why is Bitcoin crashing this time? Maybe it has something to do with Japan’s financial regulator, which appears to have renewed its crackdown on cryptocurrency exchanges. Maybe it has something to do with Bithumb, the South Korean exchange, from which hackers recently stole $30 million worth of digital tokens. Maybe, but we have a simpler explanation and it has something to do with this man:
impulse , indicates the direction of the larger trend and that is exactly what we thought was in progress on the 2-hour chart of BTC/USD shown above. The only problem was that its fifth wave – v -was still missing.
The good news was that the recovery between $6120 and $6842 looked like a w-x-y double zigzag correction, which fit perfectly in the position of wave iv. In addition, fourth waves usually terminate after retracing 38.2% of the previous third wave. Four days ago, Elliott Wave and Fibonacci analysis combined suggested that as long as $6842 was intact, more weakness in the price of Bitcoin should be expected. The updated chart below shows how things went.
The bulls made an effort, but $6842 survived. From then on the bears took control of the situation and dragged the price to a new of $5833 so far. But please, do not blame Leonardo Fibonacci for the crash. He did not invent the ratio, he simply discovered it. And we are so glad he did, because it adds another layer of precision to the arsenal of the Elliott Wave analyst.
Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.