Bitcoin’s 5% Whiplash Was No Accident — Charts Reveal The Full Story
Key Takeaways
Introduction
On December 17, Bitcoin (BTC) experienced a violent price swing, surging to around $90,500 before reversing hard and sliding toward $85,200. This 5% move, equivalent to roughly $5,000, caught many traders off guard. However, a closer examination of the charts reveals that this move was not an accident, but rather a result of structural market movements.
Chart 1: The Setup
The first chart shows the setup leading up to the price swing. Bitcoin had been consolidating within a narrow range, forming a symmetrical triangle pattern. This pattern is often a sign of a impending breakout, as the market is building up energy and waiting for a catalyst to release it.
Chart 2: The Breakout
The second chart shows the breakout from the symmetrical triangle pattern. As the market broke above the upper trendline, it triggered a wave of buying, propelling the price upward. However, this breakout was short-lived, as the market quickly reversed and began to fall.
Chart 3: The Reversal
The third chart shows the reversal in more detail. As the market fell, it encountered support at a key level, marked by a previous swing low. This support level held, and the market began to bounce back, forming a hammer candlestick pattern. This pattern is often a sign of a potential reversal, as it indicates a shift in market sentiment.
Conclusion
In conclusion, Bitcoin’s 5% price swing on December 17 was not an accident, but rather a result of structural market movements. By examining the charts, we can see that the setup, breakout, and reversal were all part of a larger market narrative. Understanding these charts can help traders prepare for similar market movements in the future.
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