Not a single day goes by that you can't find a story about how the Bitcoin chart is following the Elliot Wave Theory. Large investment firms are now starting to tell you about how the graph is forming candles, hitting dangerous highs, or a bubble ready to pop.
Here's a 4 year chart:
But guess what? Bitcoin is not a stock. In fact, if you take a look at each peak, you can easily find a valley(sell off). If you actually spend the time, you can also figure out what caused each sell off.
Let's recap a quick list of some of the sell offs:
- Mt Gox collapse.
- Silk Road shut down.
- China blocks all exchange withdrawals
- ETF denied by SEC.
- China declares new ICO's illegal and demands funds returned.
Here is a great graph, with list of historic events:
https://99bitcoins.com/price-chart-history/
The events do not follow any sort of wave theory, trading pattern, p/e ratio, or future price model. The dips are all political or regulatory.
This weekends decline is directly related to China banning all new ICO's, and is impacting all crypotcurrencies across the board:
There are probably traders selling into the volatility, but positive news can easily have the opposite effect.
If Uber announces they will accept Bitcoin this week, look out!