close icon

Bitcoin and BitMEX Trading Halt in Elliott Wave Context

Bitcoin shot up by over $400 in as little as 20 minutes today in a move some crypto experts attributed to a short squeeze during BitMEX’s scheduled maintenance. Unfortunately, BitMEX’s trading halt can explain the surge only in hindsight, which means even crypto experts did not expect it. For example, Don Le, CEO of ChainRock asked on Twitter: “Is it a coincidence Bitmex is down for maintenance and we get a pump?

Whether it is a coincidence or not is not a question Elliott Wave analysts have to scratch their heads over, because today’s rally fits perfectly into the wave count we sent to subscribers ten days ago, on August 12th. Take a look. (some marks have been hidden for this article)
Bitcoin Elliott wave analysis 4h chart
Actually, today’s surge was not the only move this chart prepared us for. Ten days ago we thought the decline from the 61.8% Fibonacci level was supposed to evolve into a complete five-wave impulse in the position of wave 1. Wave “iv” had to lift BTCUSD a little higher, before wave “v” drags it to a new swing low. On the other hand, the theory states that every impulse is followed by a correction of three waves in the opposite direction.

So, once wave 1 down was over somewhere below the $6000 mark, the bulls were expected to return in wave 2 and push the price of Bitcoin up to the vicinity of $7000 again. Furthermore, since Elliott Wave patterns form as a result of changes is market psychology, there was no reason for traders to search for particular catalysts to trigger the anticipated price moves. The market was probably going to find them anyway. Ten days later, here is an updated chart of Bitcoin against the U.S dollar.
Bitcoin Elliott wave analysis updated chart
$6544 was where wave “iv” up ended and wave “v” down began on August 13th. On August 14th, BTCUSD plunged to $5880 to complete the entire impulsive selloff from $8497. It was time for a corrective recovery and the bulls did not disappoint – bitcoin climbed to almost $6907 earlier today. The market found the catalyst it needed in BitMEX’s scheduled trading halt, but the stage for today’s jump was set over a week ago, when the five-wave decline in wave 1 came to an end on August 14th.

What’s next for BTCUSD? That is the subject of discussion in our Wednesday Elliott Wave update you can still order and receive TODAY!

Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

Ethereum Price to Face an Important Decision Soon

Bitcoin has been unstoppable in 2019 and the old “to the moon” chatter is getting louder and louder once again. Ethereum – the second biggest cryptocurrency – has been delivering generous returns since the start of the year, as well. ETHUSD, currently hovering around $343, is up 325% from its December 2018 low of $80.90.…

Read More »

Overbought TRON Can Tumble 30% Against Dollar

TRON became the 7th largest cryptocurrency by market cap following a 135% surge in the last month. It surpassed Litecoin and Stellar on its way up and is now within a striking distance of Tether in the sixth place. TRXUSD’s recent performance can easily convince investors it is time to join the bulls. The problem…

Read More »

Bitcoin Proves Traders Can Prepare without “Knowing”

The price of Bitcoin slightly breached the psychological level of $3500 yesterday and still has not been able to escape its gravity as of this writing. The current selloff brought back the memories of the time when BTCUSD fell to $3122 a month ago. And while in the markets everyone is an expert in retrospect,…

Read More »

Here is Why BTCUSD is Down 40% in Less than a Month

The price of Bitcoin is declining at an unprecedented speed. Less than a month ago, BTCUSD was hovering above $5500. Last week it fell to as low as $3210, prompting Peter Mallouk, chief investment officer at Creative Planning Inc., to call Bitcoin a “dead man walking”. However, the truth is it didn’t take a professional money manager…

Read More »

Bitcoin Was Going “to the Moon”… And Then It Wasn’t

What a difference a year can make. This time last year Bitcoin was thought to be going “to the moon” by a great majority of people. BTCUSD was approaching the $20 000 mark at the time and financial gurus, hedge fund managers, celebrities and small individual investors alike were rushing to join the bulls. Many…

Read More »

Bitcoin Selloff Crushes Bulls’ Faith in $6k Support

The last several months have been unusually quiet for the price of Bitcoin. The largest cryptocurrency first touched the support area near $6000 in February and has been testing it multiple times since. This support looked so strong for so long that traders and investors started believing BTCUSD was getting ready for the next major…

Read More »

Elliott Wave Ahead of Bitcoin ‘s Goldman-Inspired Crash

Bitcoin was trading above $7400 on Wednesday morning, following a recovery from as low as $5880. Crypto investors hoped the rally will continue, but they could not predict that just a few hours later Goldman Sachs will say it is abandoning its plans to establish a cryptocurrency trading desk, citing the ambiguous regulatory environment as…

Read More »

More analyses