Introduction
In recent years, the growing attention to cyclical analysis in financial markets has rekindled interest in a discipline as old as man himself: astrology. Although often considered a pseudoscience, financial astrology is gaining credibility among some analysts and investors who note surprising correlations between planetary movements and market cycles, especially in the cryptocurrency sector, known for its volatility and emotional sensitivity. One of the most discussed astrological events is Mercury retrograde, often associated with confusion, slowdowns and trend reversals. But how much truth is there in all this?
Planetary Cycles: A Brief Overview
Each planet in our solar system follows a specific orbital cycle. In astrology, these cycles are observed in relation to the Earth and interpreted as large-scale energetic influences. For example:
Mercury: Governs communication, trade, technology. Its retrograde cycle occurs approximately 3-4 times a year.
Venus: Connected to values, beauty and finance. Its retrograde cycle (about every 18 months) is often linked to economic revaluations.
Jupiter and Saturn: Their slower cycles are thought to be linked to macroeconomic trends.
Uranus, Neptune and Pluto: These act on a generational scale and can signal paradigm shifts.
Mercury Retrograde and Cryptocurrencies
When Mercury goes into retrograde motion — an optical illusion where it appears to move backwards across the sky — many traders notice unusual behavior in the markets. In crypto, where the emotional component is heightened, retrogrades often coincide with:
Increased volatility
False technical signals
Technology issues (hacks, bugs, network outages)
Trend reversals, especially in weekly micro-cycles
For example, some strong correction events in crypto markets have occurred right during or immediately after a Mercury retrograde phase, such as the May 2021 dump and the January 2024 post-ETF correction.
Astrological Cyclical Analysis applied to the Markets
Many analysts do not rely on astrology to “predict the future,” but rather to identify time windows with high probability of change, in combination with technical and fundamental analysis.
Practical use examples include:
Backtesting of past events during specific planetary phases
Moon phase analysis for intraday trading (e.g. full and new moon often coincide with pivot points)
Studying Saturn and Pluto cycles to understand long-term global economic trends (e.g. the 2008 financial crisis occurred during the Pluto-Capricorn conjunction)
Lunar Cycles and Bitcoin
The lunar cycle of approximately 29 days is used by some traders for short-term trades. Some statistics show that Bitcoin prices tend to make significant movements around new or full moons, suggesting a potential link between collective psychology and lunar rhythms.
Astrology as a Complementary Tool, Not a Substitute
It is important to note that astrology is not a substitute for technical, fundamental, or quantitative analysis. However, it can serve as a timing tool — similar to how you would use a cyclical indicator or a recurring pattern. Some alternative hedge funds even use astrological patterns as part of their algorithm.
Conclusions
While still controversial, financial astrology — especially in a young, emotional, and cyclical market like cryptocurrency — offers fascinating insights for those seeking to understand markets from a different perspective. Planetary cycles, such as Mercury retrograde, are no guarantee of future movements, but they can act as timing triggers to deepen analysis and prepare for possible reversals.
In the world of crypto, where innovation often meets intuition, perhaps there is also room for looking at the stars.
