Bitcoin BTCUSD Darth Maul Makes Sunday Morning Anything But Easy

Tony "The Bull" Severino

1 year ago

3 mins read

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In traditional markets, weekends pause for a moment of peace. Not Bitcoin and the rest of crypto, however.

Weekends are often when the most alarming moves occur, due to relatively low liquidity and trading volume. That’s why it shouldn’t be a surprise that Bitcoin pulled a “Darth Maul” this morning and stopped out traders on both sides of the fence.

BTCUSD Darth Maul 5M | Source: TradingView

Sunday Morning Bitcoin Stop Run Wrecks Weekend Traders

Just moments ago, during the early hours of Sunday, July 12, Bitcoin price BTCUSD in five minutes spiked nearly $100. The move just five minutes later was countered by an over $150 drop.

The resulting candle is affectionately called a “Darth Maul” by the crypto community, in reference to the Star War villain’s unique, double-ended lightsaber.

This type of move is just a form of a stop run to both sides with an especially cool and culturally relevant name.

It is designed to trigger the stop losses of traders on both sides of the fence and usually precedes a large breakout.

BTCUSD has been trading sideways for several weeks in a row now, and volatility is at historic lows.

Traders are getting into position, but thanks to moves like these, they aren’t staying in them long.

While traders and investors are out tending to personal lives, their homes, or running errands, it leaves behind a low liquidity and low volume environment in the crypto market.

It allows for Bitcoin price to move more sharply with less capital. This type of environment is a whale’s ideal opportunity to shake the market out of position before making a move.

BTCUSD Darth Maul 1H | Source: TradingView

Darth Maul, Bart Simpson, And More: What Are These Wild and Wacky Price Movements?

It results in moves like Darth Mauls, Bart Simpsons, and other movements designed to surprise traders and shake up price action.

Darth Mauls as we saw today, run a stop with a sharp move up or down, followed by a move in the opposite direction, leaving behind the lightsaber like candle.

Bart moves typically surge strong in one direction, and will spend several hours consolidating before the entire move is wiped out in the opposite direction.

Regardless of the style of movement, the reason for their existence remains the same: to shake traders out of position.

These types of moves are difficult to prepare for, due to their surprise appearance, often taking place during weekends when traders are away and distracted.

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.

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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.

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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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