Livermore Accumulation Cylinder Suggests Bitcoin To Set New ATH Next Rally

Tony "The Bull" Severino

5 years ago

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Bitcoin price may be under $10,000 for days now, but bears have still yet to push the price per BTC to new local lows and breakthrough support in the mid to low $9,000 range.

If the support continues to hold, so will the bottom of what appears to be a Livermore Accumulation Cylinder that could next be targeting a new all-time high in Bitcoin price in the days ahead.

Bitcoin Is In Legendary Trader’s Favorite Pattern: Livermore Accumulation Cylinder

While Bitcoin’s bullish parabolic advance was rejected at $13,800, the leading crypto asset by market cap has spent the last few months consolidating before it finally chooses the next short term direction.

And while the market is currently bearish on Bitcoin after repeated bounces below $10,000 failed to lead to a sustainable rally, if this support continues to hold, the next stop could be a new all-time high once Bitcoin price breaks out of the current consolidation range.

According to Adaptive Fund analyst Adam Taché, Bitcoin price is actually ranging inside a Livermore Accumulation Cylinder. The Livermore Accumulation Cylinder was popularized by Massachusetts-born American investor Jesse Lauriston Livermore – who was known to be one of the greatest traders to ever live.

https://twitter.com/adam_tache/status/1168324769395150854?s=21

Livermore’s theory involved what is more commonly defined as an ascending broadening wedge, that takes place over larger time periods. Inside this upward-sloping broadening wedge, strong accumulation takes place at key supports, and each support is used to propel the price of the asset higher and higher. At the end of the structure, there is an extremely powerful breakout to the upside, which could once again cause Bitcoin price to go parabolic.

The theory suggests that not only will this happen, but a new all-time high is the next stop in the pattern. If the pattern is indeed valid Bitcoin price will reach around $25,000 next, before falling back down to the top of the current trading range at around $12,000 to confirm is as resistance turned support.

After that, well, Taché will need to expand on his chart as it is running out of headroom for Bitcoin to stretch its arms out to.

Taché is well respected in the crypto community, and the analyst is responsible for the Bitcoin Rabbit Hole – a collection of important Bitcoin-related reading material and reference guides, personally curated by Taché.

It’s worth noting that Livermore’s favorite short set up, according to career trader, Peter Brandt, was to short the blow-off top that occurs after a Livermore Accumulation Cylinder plays out. If the Livermore Accumulation Cylinder does indeed play out, a short of the blow-off top could be among the most lucrative trades ever, given how hard Bitcoin falls once it starts to.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.