Elliot wave theory is surprisingly simple. It was created by Ralph Nelson Elliott, who revealed that stock markets operated in repetitive cycles rather than unpredictably. The platform was built for you by the Bitcoin Prime team. We’re not even just stating that; it has been created from the bottom up to be simple to use as feasible.
What characterizes cyclical market movements
When it is said that the development of the Bitcoin market phases is usually cyclical, it is closely related to the emotions and feelings generated around the market. It may seem strange, but the psychology of investors and their state of anxiety and hope can change the market trend.
Investors usually respond to events; that is, the news could be the main change in the crypto market.
Elliott’s theory, the thinking, and psychology of investors always tend to generate repetitive patterns either to take prices to the top or to a significant drop, where the movements caused by the cost of digital assets are known as Waves.
This tool is one of the many that exist to analyze the market of digital currencies or cryptocurrencies in an easier, faster, and more efficient way.
This statistical tool is not about calculations but analyzes the historical trends of the financial markets, working under the premise that history repeats itself.
Elliot structures create all trend movement; it is said that the complete wave has eight impulses divided into five impulsive waves in the direction of the trend and three corrective ones.
This tool is considered one of the most used in the financial market since its ease of interpretation allows users to adopt it to visualize market price variations.
The most convenient thing when making digital financial investments is combining technical and fundamental analysis, thus achieving an overview of the market.
The tool that best predicts the price of BTC
This wave model has been successfully applied to the prediction of the bitcoin price on several occasions, specifically during the bullish cycle of 2017-2018, where the expected price levels were obtained according to the analysis of this model.
If the spike is missed, the bitcoin price decreases quickly. During the downtrend, almost everyone pulled out. People thought Bitcoin was gone. Somehow many people hung up their gloves in the face of this economic phenomenon.
Such is the case of the bearish phase of 2021, where investors did not generate adequate weight in the market, and suddenly the price of Bitcoin rose to reach $61,000.
This phase could be compared with the current one, which translates into a corrective stage despite going through such a controversial crypto winter.
The Bitcoin “red spring” began in mid-May when Tesla CEO Elon Musk, to date a staunch supporter of the cryptocurrency, denied it due to the environmental impact of its mining and stopped accepting it as a form of payment for his electric cars, which sharpened Elliott’s corrective wave.
For this reason, any opinion given by Elon Musk directly and proportionally influences the price of Bitcoin. Even a simple emoji with a broken heart represents one of the most abrupt falls.
The technical situation of bitcoin is complicated. The cryptocurrency has plunged as much as 13% Ethereum, and Cardano is also falling further, testing essential support at $30,000. If this downward support is broken, bitcoin could expect a ‘vacuum’ drop to the $23,000-20,000 area, according to Javier Molina, spokesman, and analyst for financial firm eToro.
The Fluctuation of BTC in charge of social networks
It is incredible how actions as simple as a message through social media platforms can affect the value and movement of a crypto active like bitcoin, destabilizing all investors who faithfully believe in its bullish theory.
However, the question that the followers of the token ask themselves is how long this pointless and vain —strategy will continue to affect the value of the cryptocurrency, dragging down its value due to the simple influence of an ex.
It is essential to consider that any person, whether an expert or a novice, must establish a routine of evaluation and market analysis before investing in cryptocurrencies; nothing ensures the success of the operations more than the preparation of the investor about what happens in the future. in the environment.