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If you’ve been following the Bitcoin market over the past 30 minutes, you’ve likely noticed the odd bout of price action depicted below — Bitcoin spiked 1% in a few minutes to only crash by 3% in three minutes, then continue lower and lower as if there was no support under BTC.
As many on Twitter explained, the candles that came from this price action look exactly like the lightsaber of Darth Maul, which has blades protruding from each side.
Jokes aside, analysts say that the existence of a so-called “Darth Maul” candle is bearish for BTC. Here’s why.
Bitcoin Could Continue Lower, Darth Maul Candle Suggests
Commenting on the extreme price action — which some have chalked up to the low liquidity on the weekends and the existence of margin trading — trader Byzantine General expressed bearishness.
He wrote in a message published to his Telegram channel that when the brief surge to $9,200 took place, it was on “high volume,” implying the subsequent failure and reversal was a bearish sign. Explaining the concept further, Byzantine General said:
“When darth mauls go up first, then down, they are usually bearish and continue to bleed.”
Trader Coiner-Yadox also expressed bearishness amidst the Darth Maul candle. He explained that from how he saw it, there was a clear confluence of resistance around $9,300 — the descending trendline, February open, a pool of liquidity, a four-hour supporter, and a daily breaker — suggesting that any move into that region would be begging for a reversal.
Featured image from Shutterstock
