Rare Bitcoin Price Chart Pattern May Be the Cryptocurrency’s Last Hope

Tony "The Bull" Severino

5 years ago

3 mins read

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The entire market is in complete panic and despair, and cryptocurrency holders that just watched Bitcoin price collapse back to levels not seen since a year ago are ready to capitulate and give up on the emerging asset for good.

However, this latest drop, as frightening as it may be, could be the last pitstop in a massive bullish pattern that has been forming over the last year of price action Bitcoin. This formation could very well be Bitcoin’s last hope of overcoming the coronavirus and remaining relevant.

Rare Chart Pattern May Be The Last Hope for the First-Ever Cryptocurrency

Bitcoin is the first-ever cryptocurrency. It started off its life worth next to nothing, but in ten short years grew from virtually worthless to over $20,000 at its peak.

Since that peak was reached, crypto investors have been buying up the asset in anticipation of the asset eventually being widely adopted and falling into favor as a currency, a store of value, or any of the other narratives surrounding Bitcoin.

All signs were pointing to the cryptocurrency taking off into its next bull market just ahead of the asset’s halving in two short months from now, however, widespread panic over the coronavirus has caused all markets to collapse, including Bitcoin and the rest of crypto.

Following public concerns reaching critical levels and the virus achieving pandemic status, a major selloff took Bitcoin price from $7,500 to below $5,800.

Currently, Bitcoin price is trading above $6,000, but struggling to hold a level that was bought up with fury just one year prior.

Massive Year-Long Descending Broadening Wedge Could Take Bitcoin Price to $17,000

Bitcoin price hasn’t traded this low since the start of 2019.

And while things are certainly looking grim for the first-ever cryptocurrency and its future, this latest drop is headed toward a downward-trending support line forming the bottom of what appears to be an absolutely massive descending broadening wedge, which is traditionally a rare yet extremely bullish chart pattern.

Technical analysis is a subjective process and develops along with price action. Oftentimes a pattern isn’t visible until additional peaks and troughs appear.

These latest peaks and troughs accurately fit the description of the pattern provided by Thomas Bulkowski – the authority on chart patterns, known for having studied the performance statistics of certain patterns playing out on hundreds of thousands of price charts over the years.

According to Bulkowski, the descending broadening wedge is “found most often with upward breakouts in a bull market” adding that “downward breakouts are rare.”

Targets are found by measuring the top height of the first peak, to the low of the most recent trough, then applying this at the breakout point. While we don’t know where that will occur yet, if it will at all, a theoretical target would put Bitcoin price at $17,000.

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.