Bitcoin's price action is aligning perfectly with Jesse Livermore’s famed “accumulation cylinder” pattern. This classic speculative chart, popularized by the legendary early 20th-century trader, depicts market cycles through stages of accumulation, breakout, and vertical ascent. Livermore, known for his fortunes made and lost in stock markets, described this cylinder as a period where prices oscillate between non-parallel trendlines, forming a widening “mouth” that indicates smart money quietly building positions before a explosive move.
Bitcoin’s Perfect Alignment
The chart overlays Bitcoin’s multi-year trajectory from 2021 onward, marking key points: early dips (points 1-3), consolidation (4-7), and recent volatility (8-13) that echoes Livermore’s downward-sloping accumulation phase. As of January 17, 2026, BTC trades around $95,300 USD, having recovered from post-halving slumps and macroeconomic pressures. Wacy’s post highlights how BTC has completed the accumulation and breakout stages, positioning it for the “vertical phase”—a rapid, near-vertical price spike driven by FOMO and institutional inflows.
Vertical Phase Mechanics
Historically, Livermore’s pattern has been applied to various assets, including stocks and commodities. In crypto, similar formations preceded the 2017 and 2021 bull runs, where Bitcoin surged over 1,000% in months. The “widening mouth” aspect, as detailed in technical analyses, suggests increasing volatility within bounds, culminating in a breakout. For Bitcoin, this could mean breaching $100,000 soon, potentially targeting $150,000-$200,000 if global adoption accelerates amid regulatory clarity and ETF expansions.
Community reactions are mixed: optimists like @HarlingMayss speculate on altcoin impacts, while skeptics such as @DhekerMH call it a top. Yet, broader sentiment leans bullish, with replies emphasizing the pattern’s reliability. Critics note it’s an interpretation from later traders like Cyril Flumani, not directly from Livermore, but its predictive power in modern markets can’t be ignored.
If this plays out, the vertical phase could redefine crypto’s landscape, rewarding patient holders. However, as always in volatile markets, risks abound—macro events like interest rate shifts could derail it. Traders should watch for volume spikes and trendline breaks as confirmation. In Livermore’s words, “The game of speculation is the most uniformly fascinating game in the world.” Bitcoin seems ready to prove it once more.