Bitcoin price has been stuck trading inside a small symmetrical triangle. These continuation patterns tend to indicate that another downside move of equal size is coming. However, low sweep It would be “perfect” for a purchase setup that could start a fractional pump and vacuum years ago.
The pump and dump will be designed to further confuse sentiment and take advantage of a sudden shift to low liquidity and weak order books. Here’s what the fractal looks like and what it says about the upcoming price action.
Market timing: Why you should wait for the ‘perfect’ buy setup
Bitcoin price action is confusing at the moment. The cryptocurrency is consolidating, but unable to break any lower, and the bulls have not been able to recovery phase.
Related reading | Market Timing: Why Bitcoin Could Sweep Lows Before Rebounding
With that said, the weekly downtrend has now reached a critical point. The weekly TD Sequential indicator is now at 9 count. Market timing tool hints at possible reversal, but TD 9 more effective When “perfect”.
The TD 9 count remains to be perfected. Is a sweep of lows next? | Source: BTCUSD on TradingView.com
Parameters for the “ideal” buy setup include the final 8 or 9 candles sweep the lowest levels from the previous candles. This means that the weekly buy setup must be exactly right, below $30K and the support must be withdrawn.
The strange scenario almost exactly matches the breakdown from above $10,000 to $7,800. The price then dropped to $7,200, perfecting the buy setup and leading to one of the biggest intraday pumps in bitcoin history.
Bitcoin pump and degassing fractals checked: what to expect
Close examination of the two structures shows how accurate this fractal is. The main differences between price action back then and now is that there has been More bullish pressure Create several more peaks in place of the June 2019 eruption.
The market structure remains similar, such as support and resistance and price action. With timing also on the side of coincidence, along with a bunch of fake breakout to the upside, another fake breakout to the downside would attract and catch short trades anticipating the target of the symmetrical triangle – and instead find themselves pressing back into $50,000.
The fractal suggests a massive pump and dump is coming | Source: BTCUSD on TradingView.com
At this point, the fractal indicates that the goal was eventually reached, albeit very late around Black Thursday. The target for a symmetrical triangle based on the base scaling is somewhere around $23,000 per BTC. The reason for this is because of the ease with which whales can move the bitcoin price back and forth Sudden underdevelopment of liquidity and thinner order books than it was just weeks ago.
Related reading | What could the last phase of the cryptocurrency bull market look like
However, even though the fractal may seem and feel perfectly valid, there is nothing that can happen and the past is often not a good indicator of future performance. Is this time different?
Featured image from iStockPhotos, Charts from TradingView.com