2011-06-08

Updated Elliot Wave analysis of Bitcoin

What a difference a few days make...

It's now looking as though what I though was Wave 5 should be classified as Wave 3, in which case the terminal value for Wave 5 could be north of $37 per Bitcoin (based on Fibonacci), assuming another reworking of the wave count is required. However, I'm mainly interested in the Elliot Wave analysis as a tool for clarifying the socionomic causes.

I predicted the government would become interested if Bitcoins became more popular and this prediction was rapidly fulfilled. Senator Charles Schumer says Bitcoin is money laundering and the DEA is concerned about it and other digital currencies.

Aside from hard drugs mentioned in my last post on the topic, I noticed in my Chinese microblog feed that one guy is offering VPN services for Bitcoins. VPNs allow Internet users in China and other countries to circumvent web censorship. The government constantly blocks free, advertising supported VPNs as soon as enough Chinese use them, and they've been finding ways to disrupt the paid VPNs used by many foreigners.

Finally, I found a better chart site for Bitcoin prices at Bitcoin Charts.

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