Bitcoin - The Euro Provides a Different Perspective
Updated
Often we get stuck looking at gold' or other global commodities in US' Dollars, but this does not always provide insight as to what is actually happening. Bitcoin' has changed the way we view money. The average Joe now has a way to hedge his prevailing currency. He can purchase Bitcoin' with his native currency on Exchange A' and can sell Bitcoin for USD' on Exchange B'. Clearly the scale is not large enough to move the Forex markets, at least not yet anyways.
Bitcoin' is a global commodity, and hence it trades in various pairs from the BTCCNY' to BTCUSD' and of course BTCEUR'. Since there are fluctuations between the pairs of fiat currencies themselves, we have to be aware of the wave and cycle patterns in the other currency pairs to validate or invalidate a count. Though many follow news, I follow the money, so first we take a look at the EURUSD' pair and see where the flow of money is going.
One reason I give the BTCEUR' more credence then the BTCUSD' is not because it is a better Fiat, clearly it is not, but all the printing done through Quantitative Easing (QE). Do not take my word for it; the chart above is very clear. If I lived in Europe I would be converting Euros into gold', silver', USD' or Bitcoin'. I do not want to own something that can be printed by Xerox' copiers or a house of cards utilizing monetary control to prop up a false economy.
Unlike the BTCUSD' pair BTCEUR' is still a valid descending triangle pattern, which is likely to result in a rebound to the 9k-10k area. This is not going to happen overnight, and there are numerous hurdles along the way starting with the minor resistance levels of 6405 and 7141. The point is that the current corrective structure is still in tact from a technical perspective.
As Marc pointed out in his article detailing how the EBC' rate decision may be affecting price action, we must always consider the broader perspective of price movement from a global currency perspective. Many are focused on the BTCUSD' pairing, when the BTCEUR' pair is the fundamental driver of the broader market.
Bitcoin' is a global commodity, and hence it trades in various pairs from the BTCCNY' to BTCUSD' and of course BTCEUR'. Since there are fluctuations between the pairs of fiat currencies themselves, we have to be aware of the wave and cycle patterns in the other currency pairs to validate or invalidate a count. Though many follow news, I follow the money, so first we take a look at the EURUSD' pair and see where the flow of money is going.
One reason I give the BTCEUR' more credence then the BTCUSD' is not because it is a better Fiat, clearly it is not, but all the printing done through Quantitative Easing (QE). Do not take my word for it; the chart above is very clear. If I lived in Europe I would be converting Euros into gold', silver', USD' or Bitcoin'. I do not want to own something that can be printed by Xerox' copiers or a house of cards utilizing monetary control to prop up a false economy.
Unlike the BTCUSD' pair BTCEUR' is still a valid descending triangle pattern, which is likely to result in a rebound to the 9k-10k area. This is not going to happen overnight, and there are numerous hurdles along the way starting with the minor resistance levels of 6405 and 7141. The point is that the current corrective structure is still in tact from a technical perspective.
As Marc pointed out in his article detailing how the EBC' rate decision may be affecting price action, we must always consider the broader perspective of price movement from a global currency perspective. Many are focused on the BTCUSD' pairing, when the BTCEUR' pair is the fundamental driver of the broader market.
Note
It should say chart below. Here is the EUR/USDNote
descending triangles are not bearish reversal patterns but continuation patterns.
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