How the “Crypto-Craze” is Getting Even Crazier
Here’s what Bitcoin’s Elliott wave pattern suggested was ahead on March 5
by Bob Stokes
Updated: March 16, 2021
The world of cryptos continues to widen.
Of course, it all started off with Bitcoin -- which, by the way, the Elliott Wave Theorist mentioned back on Sept. 17, 2010, when the digital currency was only trading for pennies! Here's a quote:
Bitcoins have the necessary features of money: medium of exchange (anonymous and across great distances), unit of account (private), divisibility (up to eight decimal places), scarcity (21 million), portability (transferred electronically), and store of value (current exchange rates -- as of August 2010 -- show 1 bitcoin, or BTC, equal to 0.065 USD).
As far as EWI knows, the Theorist was the first well-known financial newsletter to call attention to Bitcoin. Of course, the rise in value since then has been astronomical.
Also, since then, other cryptocurrencies have been introduced -- like Litecoin and Ethereum (as you probably know, there are others).
An excerpt from a March 11 Marketwatch article explains yet another development:
A digitized work of art created by the artist known as Beeple just sold at Christie's [March 11] for nearly $70 million, a record amount for a new art form involving the cryptographic technology known as NFTs [or] ... so-called nonfungible tokens.
Unlike tokens, NFTs are intended to be unique and aren't meant to serve as a means of exchange. Fungibility refers to the interchangeability of one unit of a thing for another. ... One of the forefathers of NFTs [said] that NFTs should be considered a "digital cryptographic token that represents something... a piece of art, or a collectible, rather than a generic currency."
Moreover (The New York Times, March 12):
The $69 Million Beeple NFT Was Bought With Cryptocurrency
NFTs have been around since 2017 and tend to be written atop the ethereum blockchain.
Does a nearly $70 million price tag for a digitized work of art suggest that crypto-mania is due for a major correction?
Well, let's return to Bitcoin and what our cryptocurrency analyst said in our March 5 Global Market Perspective:
From about the end of January going into the last third of February, we were looking for [an upward] pattern [in Bitcoin's chart].
Our projected range for [that wave's] top was between $56,000 and $58,000. ... The actual high that Bitcoin registered on Feb. 20 was at $58,334, so basically in the ballpark of where we were looking.
From that high, a [corrective] wave began. We are focused now on whether or not the [correction] ended. We do have some evidence to suggest that it has.
Indeed, when that analysis was published on March 5, Bitcoin was trading just below $49,000. And just this weekend, the cryptocurrency had pushed to near $62,000 (before swiftly giving back 10%).
So, "crypto-mania" persists -- at least as of the time of this writing.
But, what does Elliott wave analysis suggest is next?
Well, check out the Bitcoin chart and Elliott wave labels that our Global Market Perspective subscribers see.
Follow the link below to find out how.