Analysis: Is Bitcoin Heading for a ‘Wyckoff’ Cycle? Some indicators point to this
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Answer Analysis: Is Bitcoin Heading for a ‘Wyckoff’ Cycle? Some indicators point to this
Bitcoin price dropped to the sub-$30,000 range earlier yesterday, hitting a daily low of $30184.
The price of the largest cryptocurrency by total market capitalization has been moving under the $40K level for more than two months.
Earlier this week, Bitcoin price hit a new 5-month low after breaking the key $30,000 support, however, the price rebounded strongly the next day to climb above $34,000.
The last weekends of the past few months have been volatile for the crypto market due to the expiration of billions of bitcoin options.
However, many analysts believe that we are still in a bull market.
Read:A British Bank Bans Cryptocurrency Deposits And Explains Why!
Despite the prolonged accumulating phase, the Bitcoin price movement over the past two months could trigger a “Wyckoff” trade, if the price is above $31,000 and most importantly above $30,000.
Cryptocurrency analyst Daan Crypto Trades wrote on Twitter that Bitcoin will need to maintain strong support at $30K as a dip below the price will invalidate the pattern.
BTC dollars Wyckoff update:
Looks pretty textbook so far. BTC had a clean sweep and tested the ST level today.
It is important now that BTC holds $31.1k, but what is even more important is $30k.
Trading with less than $30,000 will invalidate this idea. wick okay.
Trade here: pic.twitter.com/YSKE0QyNQU
– Daan Crypto Trades (DaanCrypto) June 26, 2021
The “Wyckoff” cycle is defined by an accumulation phase followed by a trading range that eventually runs out.
The new cycle begins with an accumulation phase that generates a trading range, and the pattern often results in a failure point or phase indicating oversold, before a strong trend eventually emerges from the other side of the range.
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Another analyst named “Rekt Capital” suggested that the Bitcoin price pattern from higher lows in the lower time frame indicates that it is in transition.
The recent heavy selling in the market could be the breaking point before the next move up.
The next step from here will complete the “Wyckoff” price hike cycle.
#BTC Continues to set at lower lows on lower time framesBTC dollars It is still in Phase C and could try to test ~$33,000 as support again for another higher low
Overall, BTC appears to be in a transitional period between phases C and D in the Wyckoff accumulation# encrypt # bitcoin pic.twitter.com/WwUyezQOdk
Read:CoinEx spends 4 years on bulls and bears adventure: How did the platform gain popularity in the market?
– Rektcapital June 25, 2021
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