close icon

BTCUSD: Libra Testimony Didn’t Cause the Fall

What will BTCUSD bring next week? That is the subject of discussion in our next premium analysis due out late Sunday!

Facebook’s Mark Zuckerberg testified before Congress on October 23rd about the company’s Libra cryptocurrency project. The hearing didn’t go as smooth as the crypto community hoped, which reflected on the price of digital assets such as Bitcoin. At one point on Wednesday, BTCUSD was down by over $750 for the day.

But was Zuckerberg’s Libra testimony the actual reason for Bitcoin’s plunge? As Elliott Wave analysts, we believe the news is startling only to those unaware of the larger trend. In BTCUSD’s case, the larger trend was pointing south when we sent the following chart to subscribers on October 9th.

BTCUSD fourth wave in progress

Two full weeks before Zuckerberg’s hearing in Congress BTCUSD was hovering around $8150. Since the price has been trading sideways for some time, we thought a correction in wave 4 was in progress. It made sense to expect more strength in wave “y” to a new swing high before the bears return in wave 5.

Libra Testimony Just a Catalyst for BTCUSD Plunge

We thought the reversal should occur in the price area between $8500 and $9000. However, the exact level was unknown and picking tops is not worth the risk. Therefore, waiting for the bears to announce their return before going short was a better idea. By the time we sent our next update on October 13th, they were already back.

BTCUSD begins fifth wave decline

What we thought was going to be a three-wave sequence in wave “y” turned out to be a five-wave impulse in wave “c”. This, however, didn’t change the overall outlook at all. With a bearish reversal already in place at $8820 it was time for more weakness towards a new low.

Wave 5 was supposed to breach the bottom of wave 3, which meant a decline to at least $7700 could be expected. Full ten days before Mark Zuckerberg headed to Congress to testify about Facebook’s Libra, the Elliott Wave stage was already set for another plunge in BTCUSD.

BTCUSD falls on Libra testimony concerns

While Facebook’s CEO was answering lawmakers’ questions, the biggest cryptocurrency fell to an intraday low of $7293. The question is, was BTCUSD going to rise had Congressmen been more receptive to Libra? Hard to say. All we know is there was an incomplete Elliott Wave pattern on the hourly chart of Bitcoin. It looks much closer to completion now.

What will BTCUSD bring next week? That is the subject of discussion in our next premium analysis due out late Sunday!



Stay informed with our newsletter

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

Privacy policy
You may also like:

Should You Buy Solana? What the Charts Say

Solana just cracked the top ten biggest cryptocurrencies with a market cap of just under $21 billion. The rumored Ethereum rival is up 235% in the past month alone after a steep ascent from $22.11 to as high as $75 so far today. Does this mean it is time to join the bulls and invest…

Read More »

Ahead of the Bitcoin Curve Since the Tesla Let-Down

The last time we wrote a free article about Bitcoin was on May 13th. The price of the biggest cryptocurrency had just plunged from over $57k to sub-$46k after Tesla CEO Elon Musk tweeted the company will no longer accept it as payment. As we showed in that article, the Tesla disappointment was just a…

Read More »

ETHUSD ‘s Bearish Elliott Wave Cycle Almost Complete

The time between May 12th and May 23rd is a period ETHUSD bulls would want to forget. The second largest cryptocurrency fell from an all-time high of $4380 to as low as $1730. While some might consider crypto to be gold 2.0, crashes like that one reveal that the space is still a wild west…

Read More »

Bitcoin Bears Needed a Catalyst. Tesla Obliged

Tesla CEO Elon Musk announced the company would stop accepting Bitcoin as payment due to environmental concerns. The EV-maker’s Bitcoin stunt lasted for just three months, apparently the time it took for its CEO to realize how inefficient and energy-consuming BTC mining is, something we wrote about in March. The price of Bitcoin, of course,…

Read More »

Harmony Coin Draws Bullish Elliott Wave Setup

Bitcoin, Ethereum, Dogecoin, you name it. There are already thousands of cryptocurrencies in existence, most of which serving no other than speculative purpose. The fact that even the big guys on Wall Street can’t resist the urge to dip their toes in the space only makes retail investors more confident. We remain skeptical. Today, however,…

Read More »

ETHUSD Wave Pattern Can Disappoint the Bulls Soon

For the crypto space, it is 2017 all over again, except bigger. The two biggest cryptocurrencies – Bitcoin and Ethereum – exceeded their previous records and then some. ETHUSD, in particular, is now approaching $2600 and is not very far from doubling its January 2018 peak level. Furthermore, ETHUSD is up 32-fold from its December…

Read More »

Bitcoin Can Never Be a Global Currency. Here’s Why

Bitcoin’s relentless rise in the past year forced even some its most vocal critics to throw in the towel. Kevin O’Leary, for example, used to call Bitcoin “garbage”, but recently said that he has 3% of his portfolio in BTC and ETH. And indeed, many, us included, have been calling Bitcoin a bubble for years,…

Read More »

More analyses