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Bitcoin price has punctured into resistance at $30,000 and bulls are celebrating the demise of the bear market.
But are they celebrating too early? Or is the first ever cryptocurrency going to fist pump higher? Find out how Elliott Wave Principle and music might hold the secret to solving where Bitcoin might be in its market cycle.
Falling Prices = Dropping Beats
Imagine an EDM song at a club or festival. Even the most-energetic song tracks typically start off slower, building and building until the beat drops. After that, the song tempo picks up and the lyrics begin.
Markets move in a similar manner, first with a small wave of hope, followed by a huge drop that gets everyone’s attention. It’s this moment that the entire dance floor begins to notice the tune, and begin participating. At this point, everyone’s doing it.
Is BTC in the same spot, ready for a small correction? | BTCUSD on TradingView.com
This Is What It Sound Like, When Bulls Run
If this sounds a lot what it’s like when Bitcoin or another asset begins to trend, that’s because music and markets both march to a similar beat. For example, Hurst Cycle Theory looks at the market’s cyclical rhythm and covers themes like harmonics and amplitude — themes also prevalent in music and sound.
So what’s this all have to do with Bitcoin? The natural rhythmical behavior in markets, according to Elliott Wave Principle, are found all over the place — from art, to psychics, to music. Currently, after some surprising upside, bulls are euphoric because they know the beat is about to kick into high gear.
But they could be forgetting that beat drop that comes before things intensify and need to “check” their “levels” with a “one-two,” mic check.
The 1/2 1/2 setup in action | BTCUSD on TradingView.com
Check One, Two: Is The Bitcoin Uptrend On?
The most ideal positioning in an Elliott Wave impulse or motive wave is at the 1/2 sub-wave of wave III, which follows after waves I and II complete.
This 1/2 behavior that arrives after a completed I/II wave count, is the point before the party really starts. Prices tend to pump toward the ceiling with very few pullbacks. If the count is accurate, the crypto market could see a small correction, followed by a several month-long bull trend.
Crypto traders could learn a thing or two about what to do in this situation from musicians who noticed the important of the 1/2 1/2 setup.
“I always count ‘one, two, one, two’ before recording anything, just to make sure the levels are good,” explained rocker Eddie Van Halen. “When I count ‘one, two, one, two,’ it’s not just to check my levels, it’s a reminder to myself to focus and be present in the moment,” advised folk artist Joni Mitchell.
If you’re worried about what Bitcoin might do next, check your levels, be present in the moment, and focus.Check for the 1/2 1/2 setup, and if the beat does drop, don’t be afraid to hit the dance floor, a mic drop rally could follow.
Here is a detailed 🧵 explaining why any #Bitcoin pullbacks are A-okay, along with an absolutely fascinating story about technical analysis and music.
Best of all, this all ties into Elliott Wave Principle, and a killer trading tip. Keep reading… pic.twitter.com/gLtFT8rxqr
— Tony “The Bull” (@tonythebullBTC) April 11, 2023
Follow @TonyTheBullBTC & @coinchartist_io on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice. Featured image from iStockPhoto, Charts from TradingView.com