Bitcoin price has been locked in a mostly sideways pattern, with a slight bullish slope. The price action looks like the beginning of Jesse Livermore’s famous “speculation chart” also referred to as a roller build-up.
If the old timey pattern is accurate, BTCUSD could take about $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 as volatile as the financial markets themselves. The father of day trading went bankrupt several times, became one of the richest men in the world, and eventually 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 “Epiphany Boy” and “The Big Bear of Wall Street,” and at one point received a personal call from President Woodrow Wilson to force Livermore to stop gouging the price of cotton. It’s the raison d’etre of regulations today, and was the basis for the anti-hero of the stock operator’s memoir book.
But things weren’t always so bad, and even when they were, he often made money. Take, for example, the Wall Street panic of 1929. Livermore made millions shorting the market before the Great Crash. Some speculate that it was the cause of this. So why is any of this important today?
The Livermore Speculative Chart | BTCUSD on TradingView.com
Long live the accumulator cylinder, revived in bitcoin
Livermore was the king of old-school speculation. And although he was famous for manipulating them, he understood how the markets worked. One specific pattern he is known for because he gave it its name, is the Livermore Accumulation Drum, also known as the “Livermore Meditation Chart”.
Place the speculative chart next to the recent Bitcoin price action, and it looks eerily similar. If the pattern is true, it should indicate that this backlog occurs like a pattern label. Moreover, if accurate, it could mean that a huge uptrend is coming next.
Using the price chart as a guide, he could suggest that Bitcoin could reach $200,000 per coin and do so around the end of the year. Of course, this is all speculation just like the Livermore chart says. Only in hindsight will we know if it is a valid pattern or not. Given the past cases of the pattern appearing in Bitcoin, the chances are low. But given Livermore’s legendary status, it’s worth a watch.
