Bitcoin’s ‘speculative chart’ suggests cryptocurrency will take off soon

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As institutions, businesses, countries, and many more buy Bitcoin, cryptocurrency begins to shift from a speculative asset to a macro-financial asset, just like gold, oil, and the like. But before that happens, the leading cryptocurrency by market cap is mimicking Jesse Livermore’s “speculative chart” with incredible accuracy and precision.

If this rare chart pattern called the Livermore accumulation cylinder continues to unfold, the Bitcoin bull cycle is about to reach a dramatic climax. We also delve into the legendary life and untimely death of Jesse Livermore himself.

Speculative chart: Bitcoin’s price pattern matches Livermore’s accumulation cylinder

Bitcoin price action has had its ups and downs, literally and figuratively. After hitting a new all-time high, rather than soaring to $ 100,000 or more where the bull market should end, the cryptocurrency fell back to retest lows of around $ 53,000.

The price gyrating action has placed the king of cryptocurrencies in a wedge-shaped pattern with a widening mouth. It also closely mimics that of a Livermore accumulation cylinder.

The 2021 BTC bull cycle | Source: BTCUSD on TradingView.com

The chart above shows the BTC price action from the April high until today. If the model is valid, a huge amount of speculative volume could suddenly emerge, pushing Bitcoin and other cryptocurrencies to more dramatic highs, and possibly the culmination of the current market cycle.

Related reading | In Search of Fibonacci: Is Bitcoin Starting A “Gold” Recovery?

Before erasing the ‘Livermore speculative chart’, the 2017 bull run juxtaposition on the same cylindrical price action below follows the rest of the pattern – even becoming completely parabolic by the time the eighth phase of the chart has passed. place. At nine o’clock the rally is almost out of steam, and at ten things start to tip lower.

The 2017 BTC bull cycle | Source: BTCUSD on TradingView.com Who Was Jesse Livermore: Memories of a Legendary Stock Trader

But who was Jesse Lauriston Livermore and why are we to believe that his graphic scheme might still work today – some 80 years after his death? According to Wikipedia, Livermore is a “day trading pioneer”.

“In an era when accurate financial statements were rarely released, obtaining current stock quotes required a significant transaction, and market manipulation was rampant, Livermore used what is now known as technical analysis as the basis. of its transactions. Its principles, including the effects of emotion on trading, continue to be studied.

Livermore’s short position before the collapse of Wall Street in 1929 was legendary, earning him the title of “greatest trader to ever live”. Her legend doesn’t end as a happy one, however. It doesn’t start that way either.

He grew up in Massachusetts, forced out of school by his own father. With the support of his mother, he runs away. At the age of 14, he worked as a ship’s boy posting quotes at a Boston-based brokerage house. By the age of 20, he had achieved a 1000% ROI and was banned from almost all Boston area bucket stores due to his large and consistent earnings. Livermore was forced to wear disguises and take false names to continue trading.

Later, Livermore served as the basis for the main character in Edwin Lefèvre’s best-selling book Reminiscences of a Stock Trader.

Related reading | Want to learn technical analysis? Read the NewsBTC trading course

During the panic of 1907, his short positions brought him in over a million dollars in a single day. His mentor at the time, JP Morgan, begged Livermore to stop short selling – which he agreed to, and instead took advantage of the rebound. He earned a reputation as the “Big Bear of Wall Street” and was personally blamed for the crash – he even received death threats and had to hire armed bodyguards.

At the time, this kind of wealth was rare. Livermore owned a $ 200,000 yacht, for example. But following that stock market crash of 1929, Livermore’s mental health deteriorated. His wife had shot her son, but not fatally; he had an ongoing trial of a Russian mistress; and several bankruptcies.

In 1934, the SEC in the United States imposed new rules that would have impacted Livermore’s business and he lost all of his fortune. He died on November 28, 1940 from a self-inflicted gunshot wound, leaving a handwritten note for his wife to apologize. His son, Jesse Jr. also died of a tragic suicide, as did his grandson.

All roads lead to it. #Bitcoin pic.twitter.com/DAMANCCtHi

– Tony “The Bull” Spilotro (@tonyspilotroBTC) November 30, 2021

Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market information and technical analysis training. Note: The content is educational and should not be taken as investment advice.

Featured image from iStockPhoto, charts from TradingView.com

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