Today we want to show you how strongly MicroStrategy and Bitcoin are correlated, so it can be telling us who is driving the price of Bitcoin.
As you can see, charts are in tight positive correlation and looking at the wave structure of MicroStrategy from Elliott Wave perspective, seems like one more leg down is missing to complete a five-wave cycle within wave (C), therefore BTC may stay down or sideways for some time.
From psychological point of view, many new Crypto traders are buying dips now in fear, desire, and greed not to miss again, so in Crypto market is always dangerous when the price turns for 50% from the highs, so we have to be very smart and patient.
We actually believe that BTC is still trading in a correction, it's just a higher degree corrective phase which can be a bigger one and it may take some time to make traders insecure and impatient before bulls show up again.
Be humble and trade smart! If you like our idea, then please like and share it.
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
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Considering that MicroStrategy can be now finishing wave 4 correction which can be followed by another decline into a wave 5, then we can easily expect more downside pressure for BTC.