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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.

Altcoins

3 Cryptocurrencies Most Likely to Follow Bitcoin’s Performance

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For more than a year, the cryptocurrency market has been dominated by bearish influence, with most coins seeing constant drops, or stagnation, at best. This all changed in the past few months, starting with Bitcoin which once again started leading the market up, bringing one minor rally after another.

BTC itself experienced massive losses in 2018, with its price going down by around 84%. Most other coins among the top 10 mirrored its performance, and some of them experienced even greater losses. However, now that Bitcoin sees gains again, these cryptocurrencies are still following its example, and many of them have seen massive breakouts. Some of the more notable altcoins that followed Bitcoin’s recent example are Ethereum (ETH), Stellar (XLM), and Cardano (ADA).

Ethereum performance mirroring Bitcoin’s price

As mentioned, Bitcoin led every rally so far, but before it did, its price first went through what is known as an ascending triangle pattern. The pattern held for around five months, which is exceptionally long for the crypto world. However, once the pattern was finally broken — the coin’s price skyrocketed, more than doubling itself within only two months.

One thing to note is that Ethereum performed in pretty much the same fashion. After five months of struggle and confusion for investors, the second largest cryptocurrency also managed to break the pattern and skyrocket as well. It…

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Bitcoin

4 Reasons Why the New Bitcoin Rally Is Unlikely to Stop Now

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After more than a year of declining prices, the crypto market is finally seeing a period of serious recovery — one that has already brought digital currencies to heights not seen in over half a year now.

Only days ago, Bitcoin surged past several major resistance levels and managed to exceed its yearly high of over $8,000. Already, many skeptics are predicting the soon end of the bull run, and the possibility of yet another sharp decline. However, there are signs that suggest otherwise — that this bull run is only getting started, and that it will not end anytime soon.

There are four reasons why this is the case, and they are as follows:

1) Bakkt

There is the long-awaited Bitcoin futures exchange, Bakkt, which recently announced that the July test date for Bitcoin futures is soon to be set. Bakkt’s launch was delayed multiple times already, so the announcement came as quite a surprise. However, it appears that it will happen quite soon, after all.

As soon as its arrival becomes a certainty, Bitcoin will likely skyrocket even further, just like gold did when gold ETF appeared in 2013.

2) Bitcoin completely ignored the hacking of Binance

Binance has been the largest crypto exchange by trading volume for a while now, and as such, many expected that, if anything were to happen to it, Bitcoin…

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Bitcoin

The New Rally Has Arrived: Crypto Market Cap Goes up by $24 Billion Within a Day

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The crypto market’s recovery progresses further, and at a rapid pace, at that. Bitcoin has just surpassed the $8,000 mark, which is the first time its price has been that high since July of last year. In addition, the entire crypto market is making billions within hours.

Bitcoin (BTC) sees another serious surge

In the past 24 hours, the total crypto market cap has gone up by around $24 billion. Meanwhile, BTC price has grown by $1,000 within the same period, as the largest coin traded barely above $7,000 on early Monday. At the time of writing, the coin’s price sits at $8.014.31, with a 14% growth in the last 24 hours. Meanwhile, the BTC market cap has gone up to $141.85 billion, and even the coin’s trading volume surged to over $31 billion.

While many are wondering whether this is a return to the massive heights seen back in 2017 or only a temporary surge which will soon see a correction — no signs of an upcoming decline have been noticed as of yet. In fact, new heights were made and then exceeded multiple times in the past week, with a massive 33% gain during that time. And, with Bitcoin’s dominance at 60%, many are expecting that massive altcoin surges are to be expected as well.

The growth of altcoins can already be seen, as Bitcoin

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