Related Topics
Currencies , Trading , Investing
Share This Page         

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."


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


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.

Now YOU Can Get in Front of Big Waves in Bitcoin, Ethereum and Litecoin

— with EWI's Cryptocurrency Pro Service

When a Market is in a Bubble, Waves Are BIG and They Are FAST

Volatility Means Opportunity

Recent Moves in Cryptos Portend CONTINUED Volatility

CME and CBOE NOW OFFER Bitcoin Futures, So...

For the First Time Ever, You Can Participate in Both Directions on Stable Exchanges

EWI's FX analysts provide intraday and daily cryptocurrency coverage. 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.

EWI first alerted subscribers to Bitcoin back in 2010 – when it was trading at 6 cents and before anyone knew what Bitcoin was. They gave on-the-record updates as Bitcoin climbed to its $20000 peak in December 2017. Then, a few days before that high, they called for Bitcoin to plummet.

And plummet it did. After it crashed 85%, those investors who drove Bitcoin's price to $20,000 didn't care anymore. Bitcoin was as good as dead. That's when Elliott wave patterns in Bitcoin's price charts again began to scream: "Opportunity!" EWI’s Crypto Pro Service alerted subscribers -- and Bitcoin surged 165%+ in 6 months.

Most traders get run over by big market swings. High volatility markets like Bitcoin present plenty of risks—and plenty of opportunities. EWI’s analysts keep their vigilant eyes on the waves, on the lookout for moves most people won’t see coming. Will they call every move? Of course not, no forecasting service does. But for traders excited to enter these waters, there is no better perspective available to make sense of the crypto market.

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

You Get Analysis Through the Day

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 Bitcoin, Ethereum and Litecoin. 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.

You Get "Opportunity-Now!" Alerts

As a Cryptocurrency Pro Service subscriber, you also get opportunity alerts in currencies. Your Pro Services Forex team scours all FX and 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.

You Get Essential Weekly Perspective On Currencies

Once a week, your crypto guides prepare a video to help you prepare for the week ahead. Sit back and watch as our analysts reveal the crypto markets that are on their radar and should be on yours. 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.

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.

Get Intraday and Daily Crypto Coverage