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.
— 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.
— Rekt Capital (@rektcapital) June 25, 2021
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