This is part 1 of the long-term analysis of the bitcoin price chart based on the technical perspective provided by the Elliott Wave Principle (EWP). This article is an introduction to EWP while part 2 will apply the principle for price and date targets.EWP was proposed by Ralph N. Elliott in his 1938 book \u201cThe Wave Principle.\u201d The proposal is counter-intuitive, at first, because it argues that markets are not driven by fundamentals or news, but instead by \u201csocial mood\u201d \u2014 the collective psychology of all market participants.Elliott discovered that human psychology tends to express by ratio, and his discovery popularized the use of Fibonacci ratio analysis in market charts. Few analysts are aware, today, that pattern analysis concepts such as the \u201ctriangle,\u201d \u201cwedge,\u201d trend \u201cchannel\u201d and Fibonacci analysis were first discussed by Elliott in the 1930s. He applied these techniques as a means of determining trend development, much like they are used today. Of course, the core concept of his work, social mood, remains largely unrecognized, probably because it is nebulous and complex. But it can be understood with some simple explanations.During market rallies, social mood is positive and the collective optimism (an attitude) causes widespread buying (a behavior). When the social mood turns negative, the resultant attitude is pessimism, and the associated behavior is a predisposition toward selling and market shorting. The engine of markets is this subconscious collective psychology. Hence, good news and exemplary fundamentals fail to turn trends during a bear market. And we observe how, during a market rally, bad news and poor fundamentals do little to dent the exuberant uptrend \u2014 sometimes even emboldening the bullish sentiment and causing increased buying behavior, e.g. \u201cburn rate\u201d during the Dotcom bubble.Other social and cultural factors are also driven by social mood. For example, during the roaring\u2026<\/p>","protected":false},"excerpt":{"rendered":"
This is part 1 of the long-term analysis of the bitcoin price chart based on the technical perspective provided by the Elliott Wave Principle (EWP). This [\u2026]<\/span><\/p>","protected":false},"author":0,"featured_media":2423,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/posts\/2422"}],"collection":[{"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/comments?post=2422"}],"version-history":[{"count":0,"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/posts\/2422\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/media\/2423"}],"wp:attachment":[{"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/media?parent=2422"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/categories?post=2422"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/tags?post=2422"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}