How This Technical Setup Could Blast Bitcoin Price To $11,000?

By John Isige
July 17, 2020 Updated July 17, 2020
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Bitcoin And Ethereum Sees Unique Addresses Increasing As Prices Drop
  • Bitcoin on the verge of lift-off to $11,000 according to one cryptocurrency analyst.
  • Bitcoin price has the potential to hold above $9,000 as per the signals of the MACD and the RSI.

After a period of holding above $9,200, Bitcoin dropped on Thursday to test support at $9,000. This time, buyers were keen on averting losses into the $8,000’s range. BTC/USD made a shallow bounced upwards, stepping above $9,100. However, the largest digital asset is trading at $9,130 following increased selling activity towards $9,200.

Related reading: Bitcoin Price Analysis: BTC/USD In Repeat Mode Until Breakdown To $7,200 After Testing $8,500

In spite of the breakdown witnessed, market volatility remains low. On the other hand, a popular technical analyst believes that Bitcoin could soon hit $11,000 as long as the Wyckoff schematics (technical indicators) play out as expected. The indicator was developed by Richard Wykoff and says that all markets trade in predictable patterns. Therefore, traders have higher chances of profitability, especially if they highlight the patterns early enough.

The analyst points out that Bitcoin is in the middle of a Re-Accumulation.  This pattern is usually observed in classical middle uptrends. BTC/USD is in the “creek” phase of the pattern. Continuous action above within the pattern could place Bitcoin in a trajectory where it will be poised for a rally to $11,000 (see chart below).

BTC/USD Wykofff Schmatics patten
BTC/USD Wykofff Schmatics patten chart

Bitcoin consolidation movement in the last several weeks had driven most people on the edge. In fact, many are choosing to remain bearish, unlike the above analyst. However, during the crash to 3,800 in March another analyst used the Wykoff schematics to predict Bitcoin price reversal saying that it was trading in a Re-Accumulation pattern and not distribution. Some analysts are choosing to believe is struggling to hold in the Re-accumulation and would retreat to distribution thereby paving the way for a serious breakdown.

“BTC: Struggling to see the case for re-accumulation as opposed to distribution. If there is one its very weak. Volume profile is quite telling throughout this whole range.”

For now, Bitcoin has the potential to hold above $9,000 if not $9,100. The MACD is moving sidelong at the midline. The RSI reacted to the drop on Thursday but is currently holding at 45. With low trading volume playing out, less rapid price actions are expected in the near term.

Read more: Bitcoin’s Volatility Unaltered By Twitter Hack

BTC/USD daily chart

BTC/USD price chart
BTC/USD price chart by Tradingview

Bitcoin Intraday Levels

Spot rate: $9,124

Relative change: -4.84

Percentage change: -0.05%

Trend: Sideways bias

Volatility: Low

John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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