close icon

Bitcoin: UpBit Fraud Scandal Just a Catalyst

After the price of Bitcoin rose twenty-fold in 2017, the majority of crypto investors were expecting even bigger gains in 2018 as the digital currency was finally entering the mainstream. Alas, so far that is not the case as BTCUSD plunged by roughly 70% in just a month and a half. But instead of going straight to zero as many skeptics thought it will, the price found support in the $5900 – $6500 area. Bitcoin’s recent run started at $6427, but failed to conquer the psychological $10 000 mark and as of this writing, the largest virtual currency by market capitalization is hovering around $8600 a coin.

Fortunately for Elliott Wave analysts, Bitcoin’s hourly price chart, sent to subscribers on Wednesday, May 2nd, revealed a pattern which warned them about the upcoming bearish reversal. Take a look at it below.
bitcoin elliott wave analysis may 2nd
Actually, the pattern in question was not complete back then, but given the bigger picture outlook, we thought the rally from $6427 was going to evolve into a five-wave impulse, labeled i)-ii)-iii)-iv)-v). The problem was that wave v) was still missing, so it made sense to expect one last push higher. On the other hand, the theory states that a three-wave correction follows every impulse, so instead of joining the bulls near the $10k mark, traders should prepare for a U-turn. The updated chart below shows how the situation developed.
bitcoin elliott wave update
On May 5th, BTCUSD climbed to $9958 on Bitstamp, to $9990 on Bitfinex and even slightly above $10 000 on some of the other exchanges, but soon after that the bears took the wheel and dragged the price to roughly $8500 so far. The only difference is that an ending diagonal wave v) replaced the triangle scenario for wave iv).

The mainstream media is trying to explain the crypto market’s plunge with the news of a suspected fraud by one of South Korea’s largest exchanges – Upbit. To the Elliott Wave analyst though, this is nothing more than a catalyst, because the stage was already set for a bearish reversal near $10k more than a week in advance.

What would Bitcoin bring next week? That is the subject of discussion in our next premium analysis due out on Sunday.



Stay informed with our newsletter

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

Privacy policy
You may also like:

EOS Crypto Bulls Ready for a New Record High

In just two short weeks, EOS – the fifth largest cryptocurrency by market capitalization – fell from an all-time high of $23.03 to as low as $12.05, losing almost 48% of its value. As the price of EOS is approaching the $15 mark now, traders are wondering what to expect from now on – more weakness…

Read More »

Dash Traders Setting Their Sights on $550 a Coin

In less than four months, between December 20th 2017 and April 6th 2018, Dashcoin fell from an all-time high of $1550 to as low as $287, losing over 81% in market value. Fortunately, the month of April has been more generous, allowing the bulls to take a breather and lift Dash prices to $544 by…

Read More »

Ripple Bulls Finally Ready to Conquer $1 Again?

The cryptocurrency crash of the first three months of 2018 did not spare anyone. Most virtual currencies lost between 60% and 80% of their market capitalization and Ripple, which was briefly the second largest after Bitcoin, plunged as well. Between January 4th and April 1st, XRPUSD fell from its all-time high of $3.3170 to as…

Read More »

Bitcoin Crashes. Is the SEC to Blame?

This looks like another terrifying week Bitcoin investors will have to suffer through. The price of the biggest cryptocurrency has been in a tailspin in the last couple of days. After the bulls could not breach the resistance of $11 780 on Monday, a sharp selloff dragged BTCUSD to as low as $9 450 by…

Read More »

Litecoin Bulls Searching for Fibonacci Support

Litecoin, the fifth largest cryptocurrency by market cap, reached its all-time high in mid-December, 2017, accompanied by most other virtual tokens, including the biggest one in the face of Bitcoin. The following crash, which erased almost 70% of Bitcoin’s market cap, wiped out over 71% of Litecoin’s capitalization after the price dropped from over $370…

Read More »

Ahead of Facebook’s Crypto-Ban and Bitcoin’s Plunge

The hottest investment of 2017 has been the worst one in 2018 so far. Bitcoin, still the largest cryptocurrency by market cap out there, is down by over 50% from its $19 666 all-time high in December, after losing more than 30% in January alone. February starts in a similar fashion – with a 750-dollar…

Read More »

Dash Crashed Right On Schedule. What’s Next?

This week’s crash in the price of Bitcoin dragged virtually all other cryptocurrencies down with it. The total capitalization of the entire crypto market was down by almost $400 billion at one point on January 17th. Dash, currently the eleventh largest virtual currency, was no exception, falling from a high of $1247 to as low…

Read More »

More analyses