Bitcoin Price “Pitchfork Channel” Could Pin-Point The Last Dip Ever

Tony "The Bull" Severino

Last Updated: June 11, 2024 1:58 pm

3 mins read

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After this week’s flash crash in Bitcoin and altcoins, sentiment is back to being bearish just like that. Bears are taking an “I told ya so” tone all over social media, pointing to early 2018’s “dead cat bounce” as evidence of the bear market to come.

But according to a pitchfork channel tool drawn across important pivot points in Bitcoin price action, this flash crash could have been the last dip ever before the last leg up, the top is in, and the real bear market is here.

The Great El Salvador Bitcoin Bloodbath

The country of El Salvador this week rolled out its law allowing Bitcoin as legal tender. Pictures of signs at major brands like Starbucks and McDonald’s adorned with Bitcoin logos have made rounds across social media. Cryptocurrency adoption is happening unlike ever before.

During a day that was supposed to celebrate the game-changing crypto asset that gave birth to an entire industry of digital assets, it was instead a day of destruction.

Bitcoin price fell by 20% on some platforms, or as much as $10,000 in a single day from local highs around $52,000. The cryptocurrency has fallen hard, but is holding at a key mid-point of a massive pitchfork channel.

Last dip ever? | Source: BTCUSD on TradingView.com

Pitchfork Tool Could Pin-Point Last Dip Before Bull Peak

Pitchforks are usually associated with farming or angry mobs, but certain technical analysis tools also take such a name. Drawing the tool involves staking the pitch at a certain point, and stretching it across price action to fit certain trend pivots.

The tool is used subjectively, but when properly drawn can provide the framework for predicting future price movements. What’s interesting about the pitchfork channel, is that each major line drawn is a Fibonacci level.

In the chart above, Bitcoin price is holding above the all-important 0.5 Fib – which happened to be the launchpad to the last bull market’s peak. During this cycle, the top of this pitchfork channel was never touched, but the bottom was on Black Thursday.

Further validating the line the cryptocurrency is holding at, it also stopped the 2019 rally in its tracks. It acted as support in January and February 2021, then resistance in May and June.

Losing the line in 2018 prompted the plummet to the bear market bottom, and before that was the last leg up during the last bull run. With Bitcoin price holding the key mid-point once again, the next direction should be a touch of the top of the channel.

Follow @TonySpilotroBTC on Twitter or via the TonyTradesBTC Telegram. Content is educational and should not be considered investment advice.

Featured image from iStockPhoto, Charts from TradingView.com

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.

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