Bitcoin price is shockingly close to its former 2017 peak, causing widespread panic, fear, and despair across the crypto market. But could the violent move down be a text book zig-zag correction? And if so, what does this mean for the crypto market next?
Bitcoin Price Action Follows Deadly Zig-Zag Pattern
Despite the narrative from 2020 forward that Bitcoin and cryptocurrencies had matured has an asset class, the recent collapse reminded the world that digital assets remain speculative. Speculative assets are driven by pure emotion, since there aren’t ideal ways to fundamentally price Bitcoin yet. Most on-chain signals remained bullish despite a more than 70% fall from the peak set in November of last year, for example.
Price action might better be predicted based on Elliott Wave Theory, first discovered in the 1930s by Ralph Nelson Elliott. According to Wikipedia, “Elliott Wave Principle posits that collective trader psychology, a form of crowd psychology, moves between optimism and pessimism in repeating sequences of intensity and duration. These mood swings create patterns in the price ..
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