Bitcoin price goes beyond $100,000 but people are talking Star Wars crypto – what’s that about? How do lightsabers affect BTC price movements?
Bitcoin
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Price
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Last 7d price movement
has passed $100,000 per coin—a long-awaited milestone for the global crypto community. A few hours later, we saw a huge dip down to $90,500. And now the big question is: What information is price analysis giving traders? And what does Star Wars have to do with it?
a darth maul to remove the high leverage airpockets, to consolidate ahead of the next move upwards. pic.twitter.com/3fi5nB2HjO
— Adam Back (@adam3us) December 5, 2024
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What Does Bitcoin Price Have To Do With Star Wars Crypto Theory? Uncovering That Mean Darth Maul Doji
I am bringing in Star Wars because of the specific candle we closed yesterday with—a doji. But not just any doji—a Darth Maul doji. Its name comes from the double-sided lightsaber of Darth Maul.
(BTC/USDT)
Doji alone doesn’t mean anything in trading besides indecision in the markets. The Darth Maul doji candles, though… Those usually mean people got rekt.
And not just bears or bulls, but both – hence, the double-sided red lightsaber of Darth Maul.
Bitcoin’s massive doji yesterday braves the span of 15% and nearly $14,000. A total of $1.09bn was liquidated from the futures markets. Only 29% of these were from short positions, which means that the majority of the liquidations were from longs.
However, the current Total Open Interest in the markets is nearly $130 billion. This means yesterday’s wipeout was not as massive as we’d like it to be. Not because we want people to lose money. However, because market makers seek liquidity, liquidations provide it, which could potentially cause a bigger liquidation event.
(BTC/USDT)
Could Fibonacci Retracements Illuminate BTC Price Moves Ahead?
I’ve drawn two possible Fib Retracements for the huge move traders witnessed in November. The above is option one, in which I’ve put the retracement all the way up to yesterday’s high. Here, the levels don’t align really well with the chart. But 0.5 and 0.618 match the Fair Value Gap (FVG) formed after we entered price discovery.
Now, let’s look at the next way to draw the retracement.
(BTCUSDT)
We can see a few key levels in the Bitcoin price chart. Our previous high and current support level is around $91,500-$92,000.
Now, this retracement is up to nearly $100,000, and we can see that 0.236 and 0.382 align really well with the support levels. And 0.5 falls at around the middle of the FVG.
Whether this gap gets filled is debatable, as well as this approach to reading the chart. Some say no such phenomenon exists, while others trade primarily by it.
This article focuses on trading around the Fib levels and Moving Averages, so we won’t be joining the FVG discussion. There’s still plenty of open interest in the markets, and some Fibs and MAs were not retested. Will there be a bigger flush? No one knows, but it’s good to be prepared for one.
Happy trading, and stay safe!
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The post Bitcoin to 100K and Lightsabers? When Star Wars Infiltrates BTC Price Action appeared first on 99Bitcoins.
