Wyckoff Analysis: Bitcoin Bottom Is In, Price Poised to Break Past $8,000
For months now, crypto investors have been asking if the Bitcoin (BTC) bottom is in. While the answer has mostly been no over the past few months, a number of analysts are becoming certain that the drop to $6,400 seen earlier this month was the final bout of decisively bearish price action this cycle.
Did the Bitcoin Form At $6,400?
Cryptocurrency trader TraderXO recently remarked that Bitcoin’s price action over the past few weeks is eerily resemblant of a textbook scenario laid out by legendary chartist Richard Wyckoff, who studied trends in markets.
XO suggested that BTC’s chart is currently shaping up to be the mirror image of an “Accumulation Schematic” depicted by Wyckoff. When applied to Bitcoin’s chart, the schematic suggests Bitcoin will rally to $8,000 by early next year, then crash to enter the high-$6,000s yet again, then break out past $8,000, then $9,000 by March of next year.
Bull Signs Appear On the Charts
It isn’t only TraderXO’s Wyckoff analysis that suggests that a bottom has formed on the Bitcoin charts and bulls are poised to take over.
cryptocurrency trader Galaxy recently pointed out that Bitcoin’s one-day chart has printed a key bullish signal: an indicator tracking the asset’s momentum has just printed a “buy” signal on December 22nd.
Although some may question the validity of this momentum indicator, the last time a “buy” was printed prior to this latest signal was in mid-February, when BTC was bottoming in the low-$3,000s and over a month prior to Bitcoin breaking out from $4,000 to $5,000.