Bitcoin is in free fall, just as Mercury goes retrograde for the second time in 2022. The astrological event is blamed for all kinds of miscommunications and technology-related issues. It also appears to have a correlation with major mood shifts and pivot points in Bitcoin price.
With today starting another phase of Mercury in retrograde, let’s take a look at how the planet-related phenomenon might impact price action across crypto.
What Is Mercury In Retrograde? Examining The Astrological Event
Mercury’s period of retrograde motion begins today, and lasts through June 2, 2022. According to The Old Farmer’s Almanac, “Mercury Retrograde” is an event that happens three times per year where the planet appears to have “abruptly switched directions and has started to move in reverse across the sky.”
Interestingly, its appearance has been closely correlated with moments when Bitcoin price action has “abruptly switched directions.”
Related Reading | Bitcoin Perfectly Follows Market Cycle Comparison, What Comes Next For Crypto?
The planet, like the Roman messenger god it is named after, supposedly rules communications, which includes technology, transactions, and even contracts such as options, futures, etc. If you notice sudden computer problems over the next three weeks or issues stemming from a mistyped text message, it is Mercury to blame.
But back to Bitcoin. The top cryptocurrency has shown major mood shifts and pivots precisely when the retrograde period rolls around. Take a look.
What will Mercury in retrograde bring? | Source: BTCUSD on TradingView.com
Why Bitcoin Might See A Mood Change And How Math May Involved
Notable moments in Bitcoin price action that coincided with Mercury-driven mayhem include the 2017 bull market peak, the plunge toward the bear market bottom, the breakout just before the bull run in 2020, and even the most recent lows in January 2022 that were only just now taken out a day ahead of going retrograde.
Since not all shifts in investor sentiment are negative when this period rolls around, there is no telling what comes next – only that the period can produce dramatic results. Bears are hoping to push prices down to further lows, while bulls are hoping for targets closer to where Mercury resides in outer space.
Related Reading | Time Vs Price: Why This Bitcoin Correction Was The Most Painful Yet
In terms of why Mercury might have an impact on those of us on Earth, well, it could come down to math. The solar system has interesting and unusual relationships with the Fibonacci sequence – a tool often used in predicting price action in markets.
For example, a year on Earth is 365 days, or nearly a full 360 degrees of a circle. A year on Venus is 225 days, which is roughly the 0.618 Fibonacci ratio of Earth’s cycle. A Mercury year is 87.97 days, and is roughly the 0.236 Fibonacci ratio of the Earth’s cycle.
Could this close relationship with Fibonacci be the reason for Mercury’s extra-powerful impact on us here on Earth?
Mercury goes retrograde as Bitcoin retests the golden ratio. Coincidence? | Source: BTCUSD on TradingView.com
Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice.
Featured image from iStockPhoto, Charts from TradingView.com
Credit: Source link
