Ready To Run: Bitcoin Forms Best Performing Bull Market Bottoming Pattern

Tony "The Bull" Severino

1 year ago

3 mins read

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Bitcoin price this week blasted off from $30,000 to $40,000 in a 25% move. Although the momentum was provided by an epic short squeeze, the leading cryptocurrency by market cap could continue to run much higher if diagonal downtrend resistance is broken.

The breakout would confirm what looks like a bump-and-run reversal bottom, which according to the authority in chart patterns, has the best bull market performance out of 39 other chart patterns. Could this be the signal that bulls have been waiting for to restart their charge?

Bitcoin Bulls Could Be Ready To “Bump And Run”

After one the worst quarterly closes on record and a monthly selloff that wiped out 50% off crypto prices, investors are breathing a sigh of relief with Bitcoin finally headed away from the bottom range around $30,000.

A couple brief plunges to the yearly open were bought up with fury, which eventually led to a reversal and a short squeeze. With Bitcoin price now at around $40,000 once again, the leading cryptocurrency by market cap has formed what looks like the early stages of a strong performing bull market bottom.

The type of bottom formation is called a “bump-and-run reversal bottom” and it isn’t the first time one has been spotted on the Bitcoin price chart.

The pattern was also potentially the signal that sent the cryptocurrency from $3,000 to $13,000 the first time. If the signal is valid again, could Bitcoin see another more than 4x gain from the bottom? A similar return and rise from current levels, would put Bitcoin on track to reach a price of $130,000 per BTC before the rally is over.

Has the cryptocurrency formed the best performing bull market bottom? | Source: BTCUSD on TradingView.com

Reversal Pattern Bull Market Performance Is The Best There Is

But the question is, is this a valid bump-and-run-reversal bottom pattern? The chart above shows a textbook comparison to the current pattern. Even the volume structure appears similar, with volume increasing during the recovery, but never quite reaching the amount traded on the way down.

According to Thomas Bulkowski who has studied the results of thousands of chart patterns, says that the BARR bottom is the best performing bull market pattern out of 39.

The pattern is characterized as looking like a “frying pan” with the handle acting as the “lead in” phase. Price action follows a downward sloping trend, which when broken leads to a sharp move to the upside.

After penetrating the downtrend line, Bitcoin could pull back tor a throwback and second “bump.” At that point, the cryptocurrency should put in the final bull signal before the current crypto market cycle has officially ended.

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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