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Bitcoin’s 13% Plunge: The REAL Path to its “Bloodbath”

Sudden trend changes can be shocking – here’s one way to try and turn lemons into lemonade

by Nico Isaac
Updated: September 10, 2018

It's like something out of a daytime soap opera. The world's favorite "It" crypto coin was shot down last week as it hemorrhaged a massive 13% sell-off in a mere 24 hours.

According to the mainstream "police," the armed gunman was none other than Wall Street giant Goldman Sachs. Or, more accurately, a September 5 Business Insider report that Sachs was ditching its plans to open a crypto-trading desk due to "factors beyond [its] control."

Confirmed a September 6 Fortune article:

"Bitcoin Bloodbath: News from Goldman Sachs is Behind Today's Plunging Prices. As is sometimes, but not always the case -- the reason is pretty clear... The latest crash began Wednesday after the Goldman news broke, but it accelerated into Thursday."

Suspect identified. Smoking gun. Case closed!

Or, not. It's a fitting explanation -- but like other similar explanations based on market fundamentals, this one is one step behind the market. For traders and investors, it's much more important to identify price turns in advance. On that, Elliott wave analysis often is a better alternative.

On September 4 -- one day before the Sach's report broke -- our Cryptocurrency Pro Service identified a bearish Elliott wave setup on Bitcoin's price chart:

"While there is no evidence a top has been established, the pace of the rally has slowed to a crawl and that might signal it is mature. The proximity to the [Fibonacci] 61.8% retracement target sends a similar message. Weakness beneath 7229.94 would hint a reversal has occurred."

9918bitcoinbefore

The next chart moves forward in time to illustrate the "bloodbath" that followed:

9918bitcoinafter

As you've just read in the analysis excerpt above, this forecast was more than just a lucky guess. The market often reverses when it hits Fibonacci price targets, plus the Elliott wave picture was showing a mature rally as early as September 4.

All market forecasting is about weighing probabilities; there are no guarantees. Yet, Elliott wave analysis will always help you see in which direction the weight of the evidence tips the scale.

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Bitcoin
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Bitcoin and the gang have offered speculators lots of dramatic opportunities lately.

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Example #1: In December 2017, days before Bitcoin topped near $20,000, we warned subscribers of a "risk of collapse." Result: 85% crash over 12 months.

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Example #3: On December 16, 2019, two days before the $6,430 low, we told subscribers Bitcoin was "attempting to bottom." Result: 63%, 2-month rally.

Most traders get run over by these big crypto swings.

With Elliott waves you can be calm, prepared -- and ready to act.

4 ways EWI's Crypto Pro Service lets you make decisions with more confidence


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Your Crypto 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 7 of the world's most popular digital coins: Bitcoin, Ethereum, Litecoin, Bitcoin Cash, XRP, EOS and Monero. We provide you with crypto forecasts several times a day so you can get in front of intraday moves -- as well as longer-term opportunities.

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You Get "Opportunity-Now!" Alerts

As a Crypto Pro Service subscriber, you get opportunity alerts in other notable cryptos. Your Pro Services team scours all crypto 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.

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