“A developing upward wave is in progress”
By Elliott Wave International
On Oct. 20, Bitcoin climbed to a new all-time high above $66,000 — quite a rebound from its price level just below $30,000 as recently as July.
At that time, the sentiment was quite bearish. Here are just a couple of sample headlines:
- Bitcoin: [Investment Firm Chairman] Says Price Can Crash to $10,000 (Bloomberg, July 9)
- Why You Should Worry About the Next Crypto Crash … (Money, July 20)
All the while, Elliott Wave International’s head crypto analyst Tony Carrion was saying, in effect, “hold your horses. Bitcoin’s run is far from over.”
In the “Cryptocurrency” section of the July Global Market Perspective (a monthly Elliott Wave International publication which covers 50+ worldwide financial markets), when the grandaddy of digital currencies was still in freefall, Tony told subscribers:
Bitcoin [is] at or near the end of its [Elliott wave] correction.
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Short, sweet and to the point.
Well before July was over, Bitcoin found a bottom and has been in “bounce back” mode ever since.
The message of the Elliott wave model was the basis for Tony’s prescient Bitcoin call.
In the September Global Market Perspective, Tony again got right to the point in his Bitcoin analysis:
A developing [upward wave] is in progress.
And, as all Bitcoin observers know, that upward Elliott wave has persisted well into October.
Yet, on Oct. 20, the headline of a major financial website stated (CNBC):
Bitcoin jumps to new high above $66,000 after landmark U.S. ETF launch
But as just described, Bitcoin’s new all-time high was in the cards, according to the Elliott wave model, months ago.
As of this writing on Oct. 25, Bitcoin is trading a little below that all-time high.
Get insights by reviewing the charts with Bitcoin’s Elliott wave count, which are found in the “Cryptocurrency” section of the Global Market Perspective.
The Elliott wave model is ideally suited for emotional markets like cryptocurrencies and it can help you to anticipate Bitcoin’s next big trend shift.
If you’d like to learn about the Elliott wave model, or need to brush up on your knowledge, you are encouraged to read Frost & Prechter’s Wall Street classic, Elliott Wave Principle: Key to Market Behavior. Here’s an excerpt from the book:
Most important, the Wave Principle often indicates in advance the relative magnitude of the next period of market progress or regress. Living in harmony with those trends can make the difference between success and failure in financial affairs.
If you’d like more insights into the Wave Principle, realize that Club EWI members are granted free access to the entire online version of the book.
In case you don’t know, Club EWI is the world’s largest Elliott wave educational community and is free to join. Members are under no obligations and enjoy free access to a wealth of Elliott wave resources on investing and trading, as well as Elliott Wave Principle: Key to Market Behavior.
Follow the link to become a Club EWI member and get your free access to Elliott Wave Principle: Key to Market Behavior.