Will we have a Bitcoin price recovery? Bitcoin's recent rise in price has triggered the bullish outlook of a classic financial model in cryptocurrency.
Recovery in sight?
Bitcoin has been heavily corrected in recent weeks.
However, some believe that the price of around US$30.000 represents the fund.
The Wyckoff Method, created by Richard D. Wyckoff in 1888, attempts to navigate financial market trends based on the relationship between the supply and demand of assets.
The method has two settings: Accumulation and Distribution.
Some analysts are trying to gauge Bitcoin price timing based on this method.
accumulation signals recovery
The thesis is that the accumulation of an asset signals the fund after a sharper fall in price.
Thus, the movement leads to price recovery to the positive side.
Meanwhile, the Distribution configuration sees the asset reaching the top after a solid rally.
After that, the price reverses direction to the downside.
The five phases of a cycle
Each cycle has five unique phases.
For example, in Distribution, an asset goes through the following events in those phases (in order):
1- Preliminary Offer (PSY).
2- Buying Climax (BC).
3- Automatic Reaction (AR).
4- Secondary Test, Signal of Weakness (SOW).
5- Last Offer Point (LPSY).
Then ascension returns after Distribution (UTAD).
Wyckoff Method Confirms Bitcoin Accumulation
The recent Bitcoin price action matches the events presented in the Wyckoff Accumulation setting.
At the present time, it appears that the world's leading cryptocurrency is at its Last Support Point.
Phase 1 of this last support point reveals itself in the relationship between the previous low in the Secondary Test (between $28,8K and $30) and the Sell Climax levels (approximately $34).
Up to this point, supply was dominant under the Wyckoff Method, pushing the price down.
A rally approached in Phase B, led by both institutional demand for Bitcoin and coverage of short positions.
Later, the price dropped repeatedly towards secondary tests, but rebounded.
Now, the price of Bitcoin has entered Phase C, leaving it up to “smart money” to decide if the cryptocurrency is really ready to go back up.
A bullish confirmation would come if the ongoing rally was extended and accompanied by stronger volumes.
Recovery to 6ok usd range
According to analysts, Phase D and Phase E would ultimately reflect a full recovery run to $60.000.
“It looks like a possibility,” said Kevin Swenson.
“We just made the lowest low of $28,8 thousand … If this model happens, we will now enter the final recovery phase.”
Meanwhile, Mike McGlone, while not referring to the Wyckoff Method, noted that repeated high bounces near $30.000 are similar to how Bitcoin jumped from $4.000 in 2019-2020.
To McGlone:
“Selling Bitcoin near good support and similar drops around $30.000 in most cases this year hasn't ended well,” he added, “and if the key question this time around is whether it's different, we see a market longer lasting high."
For a guide on how to buy Bitcoin, click on the link!
