However, could an unusual astrological event coming this June cause another collapse of a similar magnitude?
The Invisible Factors Driving Bitcoin Price Action
Bitcoin is a financial asset unlike any other, but it still is bound to normal market dynamics, such as supply and demand.
Other factors do impact the price of assets beyond an imbalance of simple supply and demand and can include anything from political changes, environmental issues, a pandemic like the coronavirus, and even key dates on the calendar.
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Dates are of particular importance, and for example, phrases have been developed such as “sell in May and go away” because they recur with such accuracy and frequency.
According to an upcoming astrological event that in the past has been a dangerous omen for Bitcoin price, selling in May and going away may be the best strategy forward.
Could Mercury in Retrograde Cause Yet Another Crypto Market Collapse?
On June 18, through July 12, Mercury will be in retrograde. All this means on the surface, is that in the night sky, Mercury gives the appearance of traveling backward, which is said to have an impact of setting back individuals in some way.
There exist dozens of tips dedicated to dealing with and coping during the trying period. It is said to lead to disagreements and miscommunication, such as disagreeing on what the fair market value of Bitcoin is.
Related Reading | Mercury in Retrograde: Can Astrology Predict Bitcoin Price Cycles?
But why is Mercury entering retrograde so destructive for Bitcoin? Looking back, the astrological time period has not been kind to the first-ever cryptocurrency.
Over the entire bear market, only one period of Mercury in retrograde didn’t lead to a major price decline. It was also Mercury in retrograde that caused the November 2018 collapse to Bitcoin’s bottom.
Interestingly, and giving credence to the impact of the astrological event, the last Mercury in retrograde began on February 17, just two days following Bitcoin topping out over $10,000.
It also ended on March 10, exactly two days before Bitcoin fell by nearly 40% in a single day to under $4,000, on a date now known as Black Thursday.
Given the destruction the last Mercury in retrograde caused, selling in May following Bitcoin’s halving could be the smartest strategy.
However, the one time that Bitcoin pumped during Mercury in retrograde, it took the asset to over $14,000 just a few months later – so anything is possible, and upside cannot be ruled out.
Featured image from Pixabay