Is Bitcoin Heading for Wyckoff Cycle? These Metrics Suggest so
Bitcoin price slumped to sub-$30k range earlier today, recording a daily low of $30,184. The price of the top cryptocurrency has been moving under $40K for over two months. Earlier this week the price of BTC recorded a new 5-month low after breaking the key support of $30k, however, the price bounced back strongly the very next day to climb above $34k.
The last weekend of the last few months has been volatile for the crypto market due to billions in Bitcoin Options expiry. However, many analysts beleive we are from a market top. Despite the prolonged consolidation phase, Bitcoin’s price movement over the past couple of months could be setting a Wyckoff trade, if it holds the price above $31k and more importantly $30k.
Crypto analyst ‘Daan Crypto Trades’ wrote Bitcoin would need to maintain strong support at $30k as falling below the price would invalidate the pattern.
$BTC Wyckoff Update:
Looks pretty textbook so far. BTC had a clean sweep and tested the ST level today.
It's now key for BTC to hold, ideally $31.1K, but most importantly $30K.
Trading below $30K would invalidate this idea. A wick is okay.
Trade here: https://t.co/VZNADvrnZu pic.twitter.com/YSKE0QyNQU
— Daan Crypto Trades (@DaanCrypto) June 26, 2021
A Wyckoff cycle is identified by an accumulation phase followed by a trading range that eventually exhausts. As per Investopedia,
The new cycle begins with an accumulation phase that generates a trading range. The pattern often yields a failure point or spring that marks a selling climax, ahead of a strong trend that eventually exits the opposite side of the range
Another analyst that goes by the name of ‘Rekt Capital’ suggested that the BTC price pattern of higher lows in the lower time frame suggests it is going through a transitional period. The recent market sell-off could be the spring or breakpoint before the next move up.
The next move from here would complete the Wyckoff cycle with a price lift-off.
#BTC continues to set in Higher Lows on lower timeframes$BTC is still in Phase C and could try to test ~$33000 as support once again for yet another Higher Low
Overall, BTC seems to be in a transitional period between Phases C and D in Wyckoff Accumulation#Crypto #Bitcoin https://t.co/awJa8Sc9tI pic.twitter.com/WwUyezQOdk
— Rekt Capital (@rektcapital) June 25, 2021
- Citigroup Predicts Bitcoin Could Climb to $231,000 in 12 Months
- Ethereum and BMNR Rallies as BitMine Drops $1B on ETH, Analyst Hails “Most Bullish Setup Yet”
- ASTER Deposits Flows Into Binance Wallets Following CZ Endorsement, Listing Incoming?
- Avalanche Treasury Seals $675M Deal With Mountain Lake to Build $1B AVAX Vehicle
- Just In: Nasdaq-Listed VivoPower Raises $19M in Equity to Expand XRP Treasury Holdings
- Solana Price Eyes $360 After Bullish Retest As VisionSys AI Deploys $2B Treasury Strategy
- Cardano Price Forecast As Hashdex Listing Fuels Optimism For $1.27 Breakout
- BONK Price Rally Ahead? Open Interest Jumps as TD Buy Signal Flashes
- Shiba Inu Price to Surge as Whales Buy and Team Commits to Shibarium Growth
- XRP Price Prediction After Ripple CTO David Schwartz Resigns
- SUI Price Eyes $4.5 as Coinbase Futures Listing Sparks Market Optimism
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
