As cryptocurrency traders watch and wait for Bitcoin’s next major move, news is spreading like wildfire regarding an astronomical event starting today that could have a significant impact on the asset’s price movement over the roughly month-long phase.
But what exactly is Mercury in Retrograde, and how does it affect Bitcoin and other cryptocurrencies?
Mercury retrograde begins today: what does this mean for cryptocurrencies?
Today, at approximately 12:59 a.m. Eastern Daylight Time, Mercury, the smallest and innermost planet in the solar system, entered “retrograde.”
This phase precedes the “pre-shadow phase” which begins on June 2. Mercury’s retrograde will continue until July 12, when the celestial event ends.
As Mercury floats across the night sky, during retrograde, the planet appears to move backwards. This is not uncommon, as it happens three times a year on average.
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Its importance lies not in its rarity, but in the implicit impact of the astronomical event on human behavior.
Astrology is the study of how celestial bodies such as stars, moon, and planets affect human emotions and behavior patterns.
Mercury in Retrograde has been blamed for broken friendships, relationships coming to an end, and other misfortunes.
Price action, the regular tug of war between buyers and sellers, also depends on human emotions and patterns. For this reason, Mercury retrograde can have a significant impact on the prices of assets, such as Bitcoin.
An astrological event can determine whether Bitcoin is bullish or bearish
Mercury in Retrograde is so important, it’s written all over the internet, usually as advice about relationships, career, or horoscopes. People often search for how to deal with their emotions during an event to avoid experiencing any loss.
Cryptocurrency traders are also creating memes and sharing tidbits regarding the impact of the astrological event on Bitcoin’s price movement.
While jokes are being made, it appears that the potential impact of Mercury retrograde on Bitcoin is no laughing matter.
In the chart above, each phase of Mercury’s retrograde over the past year is highlighted in red. Notice how each stage led to a major collapse in the cryptocurrency.
Zooming out further, in the chart above, it looks as if during bear markets, Bitcoin crashes as all of Mercury retrogrades. However, in bull markets, each stage brings massive bullish momentum.
The only deviation from this rule was in early 2019, where Bitcoin rose from below $4,000 and shot towards $14,000. At the top of this movement, another bear market has begun and Mercury is in a retrograde phase.
Interestingly, the “pre-shadow phase” of June 2 was also the exact date on which Bitcoin was recently rejected from nearly $10,500, bringing prices back below the resistance level once again.
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The full Mercury retrograde phase is now back, and the Bitcoin price is at a critical crossroads. How an asset responds during this astrological event can determine whether a cryptocurrency is in a bear or bull market.
If Bitcoin breaks out with a strong impulse, it could be a signal that a bull market has arrived. Another collapse could extend the bear market even further, starting with the event kicking off today.
Whatever happens, it’s likely to happen soon now that Mercury is retrograde.