Ontology (ONT): Altcoins Don't Know How to Correct Quickly

haejin (87)in #ontogeny • 6 years ago (edited)

SUMMARY

Ontology (ONT), even in its infancy, shows a distinct set of five waves up in an impulse motive, as shown in the below chart. Elliott Waves states that after five waves, there is a requisite correction. That correction has already started as shown by the red ABC waves. These have also been traveling in a downward channel resembling a bull flag pattern. Price has breached the upper line. Many would consider that correction to be complete.

However, the Altcoins don't know how to correct quickly. It's always an execution of a Hurry UP & Wait syndrome. The ABC (white) shows the potential elongation of the correction.

There are many variations to each correction; usually 34 possibilities. The WXYXZ is yet another corrective pathway price can take to generate additional time and price extension.

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6 years ago in #ontogeny by haejin (87)

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nateinsav (42) 6 years ago

@haejin - Another great post. Any idea why crypto takes so long to correct versus other financial assets?

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timmay4life (33) 6 years ago

It’s due to the lack of liquidity* in crypto. And the real reason, I believe, is the large spreads* caused by lack of liquidity. Large spreads mean buyers often have to pay more than they might be willing to execute a buy order. In a bull market* buyers are more willing to pay more. This is why, in crypto, you see price movements that are greatly exaggerated during a bull market. On the other hand, in a bear market*, buyers feel less pressured to jump the spread and succumb to the lowest sell price. Buyers say “I don’t want to pay any more than X” and sellers say “well I won’t sell for any less than Y”. In this case, price movements become very restricted and reach an equilibrium. As a result, in cryptos, bear markets/corrections can become very extended. Take Reddcoin (RDD) for example

RDD.BTC hurry up and wait 4.10.2018.png

1 month to go up and 6 months to go down! That is the "Hurry up and wait" syndrome that Haejin often alludes to in his posts about altcoins. Reddcoin has an average daily volume of around 1-2 million USD. In contrast, mainstream financial assets see much greater liquidity. For example, Apple Inc (AAPL) has an average daily trade volume of around 40 million USD.

In conclusion, the more liquidity an asset is exposed to, the more quickly a correction in that asset can be resolved.

I hope this answered your question (:

DEFINITIONS (if needed) (;
Liquidity - volume of money changing hands
Spread - the difference between the highest price buy order and the lowest price sell order