Bitcoin Price Surpasses $100,000, But People Are Talking About Star Wars Cryptocurrencies: What Is It? How Do Lightsabers Affect BTC Price Movements?
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Price
Trading volume in 24 hours
Last price movement 7 days
surpassed $100,000 per coin, a long-awaited milestone by the global cryptocurrency community. A few hours later, we saw a huge drop to $90,500. And now the big question is: what information does price analysis provide traders? And what does Star Wars have to do with it?
a darth maul to remove highly leveraged air pockets, to consolidate for the next move higher. pic.twitter.com/3fi5nB2HjO
— Adam Back (@adam3us) December 5, 2024
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What does the price of Bitcoin have to do with the Star Wars cryptocurrency theory? Discover This means Darth Maul Doji
I’m introducing Star Wars because of the specific candle we closed with yesterday: a doji. But not just any doji: a Darth Maul doji. Its name comes from Darth Maul’s double-bladed lightsaber.
(BTC/USDT)
Doji alone means nothing in trading other than indecision in the markets. Darth Maul’s doji candles, though… They usually mean that people have figured it out.
And not just bears or bulls, but both: hence Darth Maul’s double-bladed red lightsaber.
Bitcoin’s huge doji breaks above the 15% range yesterday and nearly $14,000. A total of $1.09 billion was liquidated from the futures markets. Only 29% of these came from short positions, meaning that the majority of liquidations came from long positions.
However, the current Total Open Interest in the markets is almost $130 billion. This means that yesterday’s destruction was not as massive as we would like it to be. Not because we want people to lose money. However, as market makers seek liquidity, liquidations provide it, which could potentially cause a larger liquidation event.
(BTC/USDT)
Could Fibonacci Retracements Illuminate BTC Price Progress?
I have plotted two possible Fib retracements for the huge move traders witnessed in November. The above is option one, where I entered the retracement to yesterday’s high. Here, the levels don’t line up very well with the chart. But 0.5 and 0.618 correspond to the Fair Value Gap (FVG) formed after entering price discovery.
Now, let’s look at the next way to draw the retracement.
(BTCUSD)
We can see some key levels in the Bitcoin price chart. Our previous high and current support level is around $91,500-$92,000.
Now, this retracement goes up to almost $100,000 and we can see that 0.236 and 0.382 align very well with the support levels. And the 0.5 falls around the middle of the FVG.
Whether this gap will be closed is questionable, as is this approach to chart reading. Some argue that such a phenomenon does not exist, while others trade mainly based on it.
This article focuses on trading around Fib levels and moving averages, so we will not join the discussion on FVG. There is still a lot of open interest in the markets and some Fibs and MAs have not been retested. Will there be a bigger color? Nobody knows, but it’s good to be prepared for one.
Happy trading and stay safe!
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The post Bitcoin at 100K and lightsabers? When Star Wars Infiltrates BTC Price Action first appeared on 99Bitcoins.