Bitcoin price has been locked in a mostly sideways pattern, sloping ever so slightly upward. The price action appears to resemble the beginning of Jesse Livermore’s famous “Speculative Chart” also referred to as an Accumulation Cylindar.
If the old timey pattern is accurate, it could take BTCUSD toward $200,000 per coin before the end of this year.
Jesse Livermore: Market Manipulation, Mental Health Issues, And More
The story of Jesse Livermore was one as volatile as financial markets themselves. The father of day trading went bankrupt several times, became one of the richest men in the world, and ultimately committed suicide due to mental illness. At the time of his death, he owed more money than he had in assets.
He was known as the “Boy Plunger” and the “Great Bear of Wall Street,” at one point receiving a personal call from President Woodrow Wilson forcing Livermore to stop manipulating the price of cotton. He’s the reason why regulations today exist, and was the basis for the anti-hero of the book of Reminiscences of a Stock Operator.
But things weren’t always so bad, and even when they were, he often still made money. Take the Wall Street Panic of 1929, for example. Livermore made millions off shorting the market right before the big crash. Some speculate he was the cause of it. So why does any of this matter today?
The Livermore Speculative Chart | BTCUSD on TradingView.com
Long Live The Accumulation Cylinder, Resurrected In Bitcoin
Livermore was the old school king of speculation. And although he notoriously manipulated them, he understood how markets work. One specific pattern he’s known best for having given it its name, is the Livermore Accumulation Cylinder, also known as the Livermore “Speculative Chart.”
Placing the Speculative Chart schematic next to recent Bitcoin price action, and it looks oddly similar. If the pattern is valid, it should indicate like the pattern is named, that accumulation is taking place. Furthermore, if accurate, it could mean a huge uptrend is coming next.
Using the price schematic as a guide, it could suggest Bitcoin could reach $200,000 per coin and do it around year’s end. Of course, this is all just speculation just like Livermore’s schematic says. Only in hindsight will be know if it was a valid pattern or not. Considering past instances of the pattern appearing in Bitcoin, chances are low. But given Livermore’s legendary status, it’s worth watching.
