Crypto

Bitcoin Bulls and Bears Wary of Potential Pump and Dump Fractal

Bitcoin price is stuck in a small symmetrical triangle. These continuation patterns tend to suggest that another downtrend of the same size is approaching. However, the sweep of “ideal” lows is a buy set-up that can pump and empty a fractal that existed many years ago.

The pump and dump will be designed to further undermine sentiment and take advantage of the sudden shift to low liquidity and tight order books. This is what a fractal looks like and what it says about the upcoming price movement.

Time-to-market: why you should wait for the “perfect” buy setup

Bitcoin price movement is confusing at the moment. The cryptocurrency is consolidating but cannot move down and the bulls have failed to rebound.

Related reading | Market Timing: Why Bitcoin Could Bounce Lows Before Bouncing

However, the weekly downtrend has reached a critical point. The consecutive weekly TD indicator is now at 9. The market sync tool hints at a possible reversal, but the TD 9 is much more effective when “refined”.

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 sweeping the last 8 or 9 candlesticks of the lows of the previous candlesticks. This means that the weekly buy setting is correct, below $ 30,000, and support should be removed.

The scenario is eerily almost exactly the same as the crash from over $ 10,000 to $ 7,800. The lows were then pushed up to $ 7,200, improving the buy setup and leading to one of the biggest intraday pumps in Bitcoin history.

Bitcoin Pump and Dump Fractals Review: What to Expect

A closer look at the two structures shows how accurate this fractal can be. The main difference between price action then and today was that there was even stronger upward pressure, creating several more highs instead of the June 2019 breakout.

However, the structure of the market is similar, as are support, resistance, and price action. Given that time is also on the side of coincidence, as well as a set of false upward breakouts, another fake down would attract and trap short positions waiting for the symmetrical triangle target to be reached – and would end up at 50. 000 dollars.

bitcoin pump and dump fractal

The fractal suggests a massive pump and dump is coming | Source: BTCUSD on TradingView.com

At this point, the fractal suggests that the target has finally been reached, albeit much later, around Black Thursday. The symmetric triangle target based on the measurement rule is around $ 23,000 per BTC. The ease with which whales can move the price of bitcoin back and forth is due to the sudden lack of liquidity and thinner order books than just a few weeks ago.

Related reading | What the final stage of the crypto bull market might look like

However, no matter how similar a fractal may seem and whichever opinion is correct, it is not clear what might happen, and the past is often not a good indicator of future outcomes. Is it different this time?

Featured image from iStockPhotos, Charts from TradingView.com

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