Return of Darth Maul: Bitcoin Price Pumps And Dumps In 5% Shakeout

Tony "The Bull" Severino

1 year ago

3 mins read

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Bitcoin price today has been more volatile than normal, and that’s a statement in and of itself. The normally notoriously explosive cryptocurrency rocketed more than $2,000 and nearly 5% this morning, only to then plummet and wipe out the entire rally and then some.

The fall took the cryptocurrency down by more than 7% and $3,000, leaving liquidations in both directions behind. What caused the sudden storm, and is this just the calm in the eye, or is the madness over?

Pump and Dump Or Face-Off Between Bull And Bear Whales?

Bitcoin saw a steep rejection from above $50,000 and bulls are now scrambling to build meaningful support that holds. If not, a deeper drop and a bear market remains a possibility. For now, whales are either playing games, or waging war with one another where both sides are losing big.

A sharp move today in markets saw liquidations on both sides of the trade, and the volatility alone now has the market in a state of fear.

A pump this morning caused Bitcoin price to rise more than $2,000 and around 5%, only to immediately drop more than 7% and $3,000 to sweep support and lows. Anyone caught buying what they thought was a breakout, is now at a loss. And it all played out in less than one-hour from bottom to top then back down to the bottom.

The move pictured above took less than an hour | Source: BTCUSD on TradingView.com

Bitcoin Price Rockets On Litecoin News, Crashes After Liftoff

The move was driven in large part by the greater crypto market. Digital assets have a close relationship in price action, so when one coin pumps, the rising tide lifts all boats.

Today’s wipeout move was driven by Litecoin and a suspicious scenario where a fake press release was distributed claiming Wal-Mart would support the cryptocurrency. When Wal-Mart denied the claim, an almost immediate 30% rally was erased, also taking Bitcoin price back down with it.

A Darth Maul is all that remains on the six-hour Bitcoin price chart | Source: BTCUSD on TradingView.com

What remains on the chart on higher timeframes, is a what the cryptocurrency community has so affectionately dubbed a Darth Maul candle.

This type of wipeout candle is a doji, with an extremely long wick in either direction, forming what looks like the Star Wars villain’s trademark lightsaber. The impact they can have on investors and traders, is almost as nefarious as the LucasFilm icon.

Is this it for the shakeout, or is there more pain in both directions to come?

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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