Bitcoin price is trapped in a small symmetrical triangle trade. These continuation patterns suggest that another similarly shaped decline is on the way. However, a sweep of ups A buy setup that would be “perfect” could start a pump and dump fractal from years ago.
Pump and dump will be designed to further confuse sentiment and take advantage of sudden changes in low liquidity and thin 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 levels, neither have the bulls been able to a rebound platform.
Related Reading | Market Timing: Why Bitcoin Could Fall Before the Rise
However, the weekly downtrend has now reached a critical point. The Weekly TD Sequential Indicator is now on the count of 9. Market timing tool indicates a possible reversal, but a TD9 is much more effective when “complete.”
The TD 9 count remains to be perfected. Is a sweep of lows next? | Source: BTCUSD on TradingView.com
The parameters of a “perfect” buy setup include the last 8 or 9 candles. cleaning up From the previous candles. This means that the weekly buy setup is fine, below $30,000 and support should be removed.
This scenario is exactly the same as a crash of around $10,000 to $7,800. The lows then drifted to $7,200, completing the buy setup and becoming one of the biggest intraday pumps in the history of bitcoin.
Bitcoin Pump and Dump Fractals Examined: What to Expect
Examining the two structures more closely reveals just how accurate this fractal can be. The main difference between then and now price action was that even more reverse pressure Making many more tops instead of the blow-offs of June 2019.
Nevertheless, the market structure is the same, as is support, resistance and price action. Over time, with a set of false breakouts to the upside, another counterfeit to the downside will attract shorts and expect the symmetrical triangle target to be reached – and instead squeeze itself back to $50,000. . .
The fractal suggests a massive pump and dump is coming | Source: BTCUSD on TradingView.com
At that point, Fractal states that the target has finally been reached, albeit much later around Black Thursday. The symmetrical triangle is targeting around $23,000 per BTC based on the measurement rule. The reason why whales can easily move bitcoin price back and forth Sudden lapse in liquidity and thin order book than they were just weeks ago.
Related Reading | What the Final Stage in a Crypto Bull Market Could Look Like
However, as accurate as the fractal may look and feel, it cannot tell what may 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