Bitcoin Could Fall Towards $9,000s: Textbook Wyckoff Pattern
Bitcoin may be prepared to break towards the $10,000s, then to the $9,000s according to a recent analysis.
One trader recently noted that BTC’s chart since the end of July looks almost identical to a schematic depicted by legendary technical analyst Richard Wyckoff.
As the chart below shows, BTC’s price action looks like Wyckoff’s distribution schematic #1. The schematic lines up with an asset’s price action when it is near a local or medium-term top.
Bitcoin following the schematic to a T from here will mean that it will soon extend towards the $10,000s, then likely lower to pre-rally levels. This may mean that by the middle of September, BTC trades in the mid-$9,000s once again.
Chart of BTC's recent price action with a Wyckoff Distribution analysis by crypto trader CryptoHamster (@CryptohamsterIO on Twitter). Chart from TradingView.com
The expectations of a price correction towards $9,000s aren’t exactly unfounded.
As reported by Bitcoinist previously, one trader noted that Bitcoin dropping to the $9,000s would satisfy BTC’s historical tendency to fall 30-40% during bull markets. Referencing the chart seen below, the trader who shared this sentiment remarked:
Chart of BTC's macro price action with analysis by crypto trader HornHairs (@Cryptohornhairs on Twitter). Chart from TradingView.com
Long-Term Outlook Remains Bright
Bitcoin is anything but bearish in the longer run, though.
The Winklevoss Twins of Gemini recently asserted that Bitcoin is poised to rally exponentially in the long run due to impending inflation:
They said that BTC could hit $500,000 in the longer run, which would put the asset’s market cap over that of gold.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin Is Printing a Textbook Bearish Reversal Pattern: $9,000s in Play
Originally from Bitcoinist.com https://ift.tt/3ltkBvz
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