The Bitcoin (BTC) price has been trading in a range between $27,000 and $28,000 since Friday last week, with $27,800 currently being the most important resistance level to kick off a move to the upside. As recently as last Tuesday, BTC was trading above $30,000 before plunging more than 10%.
However, Wyckoff and Elliott Wave analysts agree that the move is not a cause for concern. According to trader and market psychology coach Christopher Inks, a minimum target of $42,350 is for Bitcoin as part of its next bounce.
Here’s What Wyckoff Analysis Says About The State Of Bitcoin
The Wyckoff method was invented by Richard Wyckoff in the early 1930s and proposes to read the market using causal fundamentals that actually predict market movements. The accumulation and distribution schemes are probably the most popular part of Wyckoff’s work in the crypto and Bitcoin community.
The models break down the accumulation and distribution phases into five phases (A through E), along with several Wyckoff events. Inks writes in his analysis that Bitcoin is most likely in an accumulation according to the Wyckoff method.
“The Elliott Wave count may or may not be correct locally. We want to see an impulsive breakout above that ascending red dashed resistance to signal that the wave ((ii)) flat structure may be complete, but a breakout above wave (b) is required to add confidence to that count,” writes Inks, who shared the chart below.
Bitcoin Wyckoff and Elliott Wave | Source: Twitter
If Inks’ count is correct, then another breakout has the daily pivot as its target. This means that the wave ((iii)) of 3 from here has a minimum target of $42,350 per Bitcoin. According to the analyst, this theory is also supported by the fact that the RSI on the daily chart is currently showing a hidden bullish divergence, with confirmation that it is complete still pending.
In addition, the Stoch RSI on the daily chart has moved back into the oversold area, so a breakout from the oversold area would further support the assumption that the wave ((ii)) is complete, the analyst says and concludes:
We can also note the red parabola. While price remains above that curved line we should continue to expect higher, overall, rather than a larger pullback. Let’s see if we can get that rally from somewhere around this area.
Todd Butterfield of the Wyckoff Stock Market Institute agrees with Inks. In his latest analysis, Butterfield writes that Bitcoin experienced a sharp sell-off on low volume last week – as expected.
This is “another low-risk buying opportunity,” according to the renowned analyst. The technometer is at 38.5 for BTC/USD and 40.4 for BTC/USDT. Via Twitter, he :
Bitcoin has not reached oversold and the price action had me staying on the sidelines for a moment. An oversold Technometer is not a close your eyes and buy, but an indication that we could be forming a bottom, or due for some sideways/higher.
At press time, the BTC price stood at $27,236, moving once again closer to the lower end of the range, probably for one more sweep of the low.
Bitcoin price, 4-hour chart | Source:
Featured image from iStock, chart from TradingView.com
Jake Simmons, a dedicated crypto journalist, has been passionate about Bitcoin since 2016 when he first learned about it. Through his extensive work with ktsl888.com and Bitcoinist.com, Jake has become a trusted voice in the crypto community, guiding newcomers and seasoned enthusiasts alike towards a deeper understanding of this dynamic field.
Read more
His mission is simple yet profound: to demystify Bitcoin and cryptocurrencies and make them accessible to everyone.
With a professional career in the Bitcoin and crypto scene that began right after graduating with a degree in Information Systems in 2017, Jake has immersed himself in the industry. Jake joined the NewsBTC Group in late 2022. His educational background provides him with the technical prowess and analytical skills necessary to dissect complex topics and present them in an understandable format. Whether you are a casual reader curious about Bitcoin or an investor seeking to navigate the latest market trends, Jake’s insights offer valuable perspectives that bridge the gap between complex technology and everyday usage.
Jake is not just a reporter on technological trends; he is a firm believer in the transformative potential of Bitcoin over traditional fiat currencies. To him, the current financial system is on the brink of chaos, propelled by unchecked government actions and flawed Keynesian economic policies. Drawing from the principles of the Austrian school of economics, Jake views Bitcoin not merely as a digital asset but as a crucial step towards rectifying a failing monetary system. His libertarian views reinforce his stance that just as the church was separated from the state, so too should money be freed from governmental control.
For Jake, Bitcoin represents more than just an investment; it's a peaceful revolution. He envisions a future where Bitcoin fosters a sustainable and responsible financial framework for generations to come. His advocacy is not about opposition but about evolution, about laying the groundwork for a system that prioritizes transparency and equity over secrecy and inequality.
As a journalist, Jake’s articles are crafted with the precision of a scholar and the passion of a true believer. He provides not only news but also thoughtful analysis that connects the dots between daily developments and larger economic theories. His work is a beacon for those lost in the technical jargon often associated with crypto discussions, illuminating the practical implications and benefits of these technologies.
In summary, Jake Simmons is not just reporting on a revolution; he wants to be part of it, fully committed to enhancing public understanding and adoption of Bitcoin and cryptocurrencies. His work is more than just a collection of articles; it’s a resource, a guide, and a companion for anyone ready to explore the potential of this digital frontier. Whether you are taking your first steps into crypto or are a veteran looking to stay on top of the latest trends, Jake’s insights provide clarity and foresight in an often unpredictable industry. Join him on this journey to reshape the world of finance, one post at a time.
You can engage with his latest takes on Twitter: @realJakeSimmons.
Close
Disclaimer: The information found on NewsBTC is for educational purposes
only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any
investments and naturally investing carries risks. You are advised to conduct your own
research before making any investment decisions. Use information provided on this website
entirely at your own risk.
