Why are these levels a great “buy” option for Bitcoin?
The bitcoin market is definitely at an indecisive moment. King Coin price has remained sluggish for the past few weeks while some indicators such as net corporate growth and the shift in illiquid supply seem to paint a positive picture.
At this point in time, market participants have no clear answer as to what Bitcoin is going through. However, when in doubt, it’s best to zoom out and see the bigger picture. Accordingly, Bitcoin appears to be in a “smaller bear cycle” within a larger “bullish cycle”.
The youngest “Bitcoin Jack” trader and market analyst commented on this said:
“My best guess is that there will be a small dip in the bear cycle in July with a second buying opportunity in August and September.”
Jack added that the current small range is between $ 32,000 and $ 36,000. According to him, this area will eventually pave the way for Bitcoin to continue its larger trend as long as it breaks through another phase of the range.
Trader explains another possible scenario:
“If the fish pattern is confirmed, I forecast a large volatility of $ 32,000 to $ 50,000 in the summer. If this is rejected, I would expect a surrender in July or a round bottom in August (fish pattern), which (partially) fills area 3. “
As shown in the graph below, the ongoing correction appears to be part of wave 4 and, according to Jack, the market is missing “wave 5”.
“The plan is to hold out while patiently building to get in position for wave 5.”
It should be noted, however, that the momentum needed to resume the larger trend takes time to gain strength. As for other major buying opportunities, Jack shares:
“Over time it became clear that the theoretical downside risk was over and that range dumping became a clear opportunity or that a surrender in wave 4 was an obvious buying action.”
Finally, the analyst reiterates that the wave 4 correction is “not over yet”. At the time of the next ATH, he said:
“Given the hypothesis, the time forecast suggests September is the time to reach a new ATH.”
According to AMBCrypto