Bitcoin is in free fall just as Mercury is turning retrograde for the second time in 2022. The astrological event is blamed for all sorts of misunderstandings and technology-related issues. It also appears to have a correlation with major swings in sentiment and turning points in bitcoin price.
As another Mercury retrograde begins today, let’s take a look at how the planet-related phenomenon could impact price action across crypto.
What is Mercury retrograde? Studying the astrological event
Mercury’s retrograde period begins today and lasts until June 2, 2022. According to The Old Farmer’s Almanac, “Mercury Retrograde” is an event that occurs three times a year when the planet “appears to have abruptly changed direction and started moving backwards across the sky.”
Interestingly, its appearance correlated closely with moments when bitcoin price action “abruptly changed direction.”
Related Reading | Bitcoin Perfectly Follows Market Cycle Comparison, What’s Next For Crypto?
The planet, like the Roman messenger god it is named after, supposedly governs communications, which includes technology, transactions, and even contracts like options, futures, etc. If, over the next three weeks, you notice sudden computer problems or problems related to a misspelled text message, it’s Mercury’s fault.
But back to Bitcoin. The top cryptocurrency has shown major swings in sentiment, turning right as the bearish period rolls around. Just look.
What Will Mercury Retrograde Bring? | Source: BTCUSD on TradingView.com
Why Bitcoin Could See a Sentiment Shift and How Math May Be Involved
Notable moments in bitcoin price action that have coincided with the mercury-fueled chaos include the peak of the 2017 bull market, the plunge towards the bear market bottom, the breakout just before the 2020 bull run, and even the recent lows in January 2022, the only there were taken out one day right now before it turns retrograde.
As not all changes in investor sentiment during this period are negative, there is no telling what comes next – only that this period can produce dramatic results. Bears are hoping to push prices to further lows, while bulls are hoping for targets closer to Mercury in 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 us on Earth, well, it might boil down to math. The solar system has interesting and unusual relationships with the Fibonacci sequence – a tool often used to predict price movements in markets.
For example, a year on Earth has 365 days, or nearly a full 360 degrees of a circle. A year on Venus has 225 days, which roughly matches the Earth cycle’s Fibonacci ratio of 0.618. A Mercury year has 87.97 days and roughly corresponds to the Fibonacci ratio of 0.236 of the earth cycle.
Could this close relationship with Fibonacci be the reason for Mercury’s particularly powerful effect on us here on Earth?
Mercury turns retrograde as Bitcoin re-tests the golden ratio. Conicidence? | Source: BTCUSD on TradingView.com
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Featured image from iStockPhoto, charts from TradingView.com
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