Bitcoin’s $10,000 “Line in the Sand”
The cryptocurrency's trends continue to be fueled by investor psychology
by Vadim Pokhlebkin
Updated: January 26, 2018
On January 23, Bitcoin fell below $10000. That's the second time in recent days that prices dipped below this psychologically important threshold. The headlines picked up on the drama:
"Bitcoin tumbles below $10,000 and is now down 25% on the year..." (CNBC, Jan 23)
That same article also observed:
"No specific driver was immediately apparent behind Tuesday's decline..."
The driver was investor psychology. That's something Elliott waves analysis is adept at helping you track and forecast, so let's see what the waves had to say about Bitcoin's latest slide.
The day before the drop, our Cryptocurrency Pro Service posted this chart and a bearish forecast (partial Elliott wave labels shown):
Bottom Line: Multiple [Elliott] wave counts warn XBT is headed lower.
(Last Price 10710): The decline below 11040 signals that the recent correction is likely complete. There are two ways to count it. Wave iv might have ended... or we can count [a still-unfolding wave iv triangle]... Both [wave counts] warn the risk is to the downside...
Early the next day, Bitcoin fell to $9910. Here's what the price action has looked like since (partial Elliott wave labels shown):
Keep in mind that sideways market moves are almost always corrective. Meaning that, most likely, Bitcoin's "wave iv" our January 22 analysis mentioned above is still developing -- as an Elliott wave pattern called a "contracting triangle."
If you know Elliott, you know exactly what this wave labeling implies. If you're curious, yet not quite sure what to make of it, our Cryptocurrency Pro Service can tell you right now what's likely next for Bitcoin (plus, Ethereum and Litecoin)
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EWI's FX analysts now provide cryptocurrency coverage. Now, investors who follow and trade Bitcoin, Ethereum and Litecoin can see what is most likely to happen next -- on multiple degrees and in both directions.
And the CME and CBOE just launched Bitcoin futures, so you can participate on stable exchanges.
To our best knowledge, The Elliott Wave Theorist was the first financial publication in the world to discuss Bitcoin. Bitcoin began in 2009. When it hit 6 cents in September 2010, amidst obscurity, skepticism and disinterest, our Theorist explained the digital currency to subscribers and said it had the potential to become the world's currency. As everyone now knows, Bitcoin recently traded at $20,000.
The majority of traders get run over by big, unanticipated market swings. Those who follow Elliott waves can be calm, prepared and ready to take action before the next, most likely turn.
4 ways EWI's Cryptocurrency Pro Service lets you make decisions with more confidence
1
You Get Analysis Through the Day
Your Cryptocurrency Pro Service subscription puts a team of Forex experts in your corner. Their goal is to make sure that day-by-day, you have the latest Elliott wave coverage for Bitcoin. To start, we will provide Bitcoin coverage several times a day. As demand proves out, we'll increase our frequency. If other cryptocoin futures become available, we'll cover them
2
You Get "Opportunity-Now!" Alerts on Currency Pairs
As a Cryptocurrency Pro Service subscriber, you also get opportunity alerts in currencies. Your Pro Services Forex team scours all FX markets for dramatic setups for you. That's when a market has reached a low-risk, high-reward juncture in its wave pattern. You'll find the alerts in the Opportunities section of your Pro Services portal.
3
You Get Essential Weekly Perspective On Currencies
Once a week, your currency analysts prepare a video to help you prepare for the week ahead. Sit back and watch as our analysts reveal the markets that are on their radar and should be on yours -- including Bitcoin. Then, each day, market veteran Murray Gunn posts his Currency Insights column. The inimitable analyst calls your attention to an overlooked but powerful wave-generated undercurrent moving FX. These videos and columns are required viewing and reading for all serious currency followers.
4
You Become Part of an Exclusive Community of Savvy Elliott Wave Traders
If you have a question about the Wave Principle or our analysis, just send us an email. An FX team member will get back to you. We know that we're successful when you are successful. We do what we can to make sure that happens.
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