PayPal is available in 193 markets and 26 currencies. With 143 million active registered accounts and $6.6bn in revenue at the end of 2013, the e-commerce giant brings the potential for new users and new business to the bitcoin economy. And this month PayPal announcement that its merchants can now accept Bitcoin should rock the market. Traders should be ecstatic. But oddly, since that announcement, there has been a gradual decline of the Bitcoin price.

This could be explained by the Elliott Wave Principle, a form of technical analysis that some traders use to analyze financial market cycles and forecast market trends by identifying extremes in investor psychology, highs and lows in prices, and other factors. It says that the market is not moved by news, or even fundamentals, but by psychology: the collective mood of all participants in the market. Some might call it the market’s social mood.

The Elliott Wave Principle explains that crowd psychology moves between optimism and pessimism in natural sequences. These mood swings create patterns evidenced in the price movements of markets at every degree of trend or time scale.

In the Bitcoin price charts, it’s evident that the big PayPal announcement has come and gone, and instead of feeling the pressure to buy, the selling pressure is intensifying. The market is acting out an underlying negative sentiment and wants to see price lower.