Elliott Wave Theory in Action – What if Bitcoin Is on the Verge of the Impulse Wave 5?
An interesting idea that would confirm that $100K is in store for Bitcoin in the coming months.
If you have been interested in the world of investing long enough, I am sure you have heard of the Elliott Wave Theory at least once. The Elliott Wave Theory began to gain popularity following a book entitled “The Wave Principle” published in 1938 by R.N. Elliott. The theory was later revived in a book published by Robert Prechter entitled “Elliott Wave Principle: A Key to Market Behavior”.
In the Elliott Wave Theory, markets evolve according to three fundamental aspects:
The evolution of the prices (graphic configurations).
These three aspects are to be taken into account in this precise order. The price evolution concerns the trends and the correction movements. Ratios are about retracements and setting price targets. Finally, cyclicality should allow us to know when these market movements and their retracements will be reached.
Elliott's wave theory is based on Charles Dow's theory, from which R. N. Elliott retains the importance of psychology, the reference to the sea and the golden numbers, and Fibonacci ratios which are the reflection of a universal law of nature.
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