Bitcoin’s phenomenal surge continues as the cryptocurrency not only breached the $5000 barrier, but almost climbed to $5200 today. Less than a month ago, BTCUSD was trading below $3000 for a while, following a crash from $4980, which fortunately, the Elliott Wave Principle managed to prepare us for early enough.
We have been closely following Bitcoin’s price development for over a year now. So far, it turns out it strictly follows the rules and guidelines of the Wave principle. The recent surge past $5000 proves this fact once again. The chart below was included in the analysis of Bitcoin sent to subscribers on Sunday, September 17th.(some marks have been removed for this article)
As visible, while BTCUSD was hovering around $3500, this chart allowed us to identify a textbook 5-3 wave cycle. According to the theory, the trend was supposed to resume in the direction of the five-wave impulse pattern. Also, since $2972 seemed to be the bottom of the corrective phase, we thought that as long as this level remained intact, long positions should be generously rewarded.
But it was not easy for Bitcoin bulls lately. First, Jamie Dimon, CEO of J.P. Morgan Chase & Co., said the cryptocurrency is a “fraud“. Then, Ray Dalio, founder of one of the world’s largest hedge funds, called it a bubble, which we agree with by the way, and if all these attacks from prominent business people were not enough, South Korea, China and Russia decided it was time to crack down on Crypto exchanges. Despite all that, the Elliott Wave principle pointed north. Less than a month later, here is how the 4-hour chart of BTCUSD looks today.
The pair initially rallied to $4130, then fell back to $3515, before taking off to where it is today. In the meantime, the invalidation level at $2972 was never threatened. It looks like even some of the world’s largest governments and financial institutions cannot stop Bitcoin’s uptrend. However, short-term developments are not always indicative of the longer term prospects. The Crypto Bubble may burst sooner than you think…