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Are we riding fifth Bitcoin wave?

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Have you ever heard about Elliott waves? No? Well, we’re not surprised. Even among market technical analysis specialists, they’re quite arcane. So let us tell you what they are and why they matter, and what they have to do with current predicament of Bitcoin. Just keep reading, we won’t get technical on you, only plain English.

Elliott waves are a form of technical analysis used to forecast the stock market (and, over the last decade, the crypto market as well). Using this technique requires of you to analyze a chart in such a way that you can identify a kind of event called “wave” which is something of a fluctuation in the market, and it’s supposed to reflect the psychology of the moment. According to this theory, all markets trend in five waves. Once the fifth wave hits the market, a new trend will begin. It can oppose the previous pattern or amplify it, but it will be a different one.

Was that too abstract? Yeah, we know. Let’s explain it in more practical terms: Bitcoin will go up again once the fifth Elliott wave reaches it. It’s as simple as that, according to this tool.

It sounds a bit magical or too empiric, but many technical traders use this approach all over the world to make money. The relevant question now would be, of course, is the current Bitcoin wave the fifth one? The answer is no, and we’ll explain to you why.

Bitcoin’s fifth wave is not here yet

Several analysts and YouTubers have been publishing their own view on the current situation and, for many of them, this is the final Elliott wave indeed. But we have reasons to disagree with them.

One of the “principles” you need to dominate with this technique is that everything should always be interpreted (or constructed) in the simplest possible way. That’s a problem for those who are predicting the final wave is here because they’re constructing their waves in a somehow complex form that needs a lot of justification when it should be self-evident.

Then, there’s the problem of cognitive bias (the tricks our mind plays on us at times that impair objectivity). We’re all sick of the bearish market. It’s been going down for 11 months now and, if that wasn’t bad enough, last week it became a carnage on Wednesday, and then again over the weekend. We all want for things to get better as soon as possible. And that is the problem as well.

Elliott Wave theory also states that you should never construe any scenario in a way that aligns with your wishes. Given several possible interpretations, you must always choose the one that suits your goals the worst, unless the evidence is so strong that no other explanation is possible. This avoids a cognitive trap known as “confirmation bias” which means that we believe what we want to believe, instead of what we are seeing.

In other words, when you work with Elliott Waves, you must always be sure that your own wishful thinking is not getting the best of you. Since it’s reasonable to assume that the analysts that believe in the fifth Bitcoin wave want it to arrive, they’re breaking this simple rule.

To wrap things up all we can say is that the fifth wave will arrive sooner or later. We can’t tell you when (Elliott wave theory doesn’t include any kind of reliable timing prediction), but it always comes.

Then Bitcoin will rise again, and the chances are that it will reach levels that we couldn’t possibly imagine right now. But that’s not what’s currently happening. Just in case you’re curious, the best analysts agree that we are currently riding the third Bitcoin wave, so we still have two to go.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image Courtesy of Pixabay.

Bitcoin

How Casinos Are Embracing Cryptocurrency

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Digital currencies and blockchain technology have had an immense impact on several industries across the globe. One of the areas where this impact has been very profound is in the gambling sector – which has also been known for embracing the latest technologies. Gaming operators have always been at the frontlines when it comes to trying out new and innovative technologies all in a bid to keep their customers happy and interested.

That said, it was only a matter of time before cryptocurrencies such as Bitcoin, Bitcoin Cash, Ethereum, Ripple, and Litecoin among many others made their mark in the gambling industry. All of the features that these digital currencies promise are, without a doubt, very desirable features for gamblers across the world.

The result is a mutually beneficial arrangement where digital currencies get the necessary boost to go mainstream while the gaming operators get a front-row seat as the world ushers in the new age of next-generation digital payments. Naturally, there has to be a framework for this and thankfully its already being implemented in both land-based casinos and in online gambling platforms. 

Crypto in Land-Based Casinos

Cryptocurrencies, since their conception, have always been digitized forms of payment. However, nearly everything is digitized nowadays. Still, brick-and-mortar casinos rely greatly on existing systems all…

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Bitcoin

Reaching true Bitcoin anonymity through the use of mixers

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There used to be a time when Bitcoin transactions were considered fully-anonymous. Back then, cryptos were only getting started, and Bitcoin was pretty much the only one that was used, apart from a handful of the first altcoins that followed. However, as the crypto industry continued to develop, current blockchain analyzers were created, and it became clear that Bitcoin’s transparency also includes tracking the coins’ movement, even when you are simply withdrawing them from your exchange to your wallet.

This is why it became necessary to use Bitcoin mixers, also known as Bitcoin blenders or Bitcoin tumblers, such as BitMix.biz, in order to reach true anonymity.

What are Bitcoin mixers, and why do you need them?

Bitcoin mixers, as the name suggests, are online services that mix Bitcoins in order to disrupt their traceability.

Let’s say that you have a certain amount of BTC in your wallet on your crypto exchange of choice. With all the exchanges having to follow KYC/AML procedures, that means that you need to verify your identity, so that the exchange — and therefore, the authorities — will know exactly who you are and how much money you earned through trading and investing.

Once you withdraw those coins to your wallet, blockchain analyzers can track the transaction, and so your wallet…

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Bitcoin

The Bitcoin Meltdown is Chance to Double Your Bitcoin

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Most of the cryptocurrency holders have never felt a day so bad.

After a blustering day of trading which saw Bitcoin price drop from $7,950 to $3,800, the massacre caused the worst sell-off to set a new 2020 low which not seen since April 2019.

The history of bitcoin only has a day in 2013 to compare a 40% fall, at that time bitcoin once dropped from $266 to $50, that was also a day when despair defeated the belief of bitcoin and almost no one could foresee bitcoin can recover and prices will reach $10,000 in a few years.

“Be fearful when others are greedy and greedy when others are fearful.” This is what Warren Buffett said about stock market and you can see the stock market never dies, it is just rise and fall happen in a different order at different times.

So it is with bitcoin. The bitcoin meltdown is a chance for a few bitcoin traders while the others are running away.

One typical way is to short bitcoin. Futures trading allows traders to make profits out of the future price difference of the derivatives. However, when during horizontal movement of prices, futures trading may gain you fewer profits to cover the possible loss of the margin.

Is there…

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