Bitcoin spring? Wyckoff ‘Groundhog’ Says Crypto Winter Could Last Another 6 Weeks July 3, 2021
The Wyckoff Accumulation technical chart pattern has become the latest trending topic when it comes to predicting where the price of Bitcoin (BTC) could go next. Some analysts have said that BTC’s recent drop below $ 29,000 signals a “spring phase” that will soon be followed by an upward rally.
While bulls advocate a continuation of the bull market trend from 2021, others warn that Bitcoin price is not yet behind, especially in the short term.
According to Filbfilb, an independent market analyst and co-founder of the Decentrader trading suite, optimistic traders could be ahead of themselves and become unsettled about the speed of recovery.
Wyckoff seems to be the taste of the month right now.
Over the years I’ve found that most people have one thing in common: they assume that accumulation is happening faster than it actually is and ignore the size of the drop. pic.twitter.com/bqWeFBVtV3
– fil fil (@filbfilb) July 2, 2021
Notably, the Wyckoff pattern has been redrawn several times over the past few weeks as the chartists try to adjust price action to their view of what will happen next, possibly ignoring the signals, ignoring other warnings and avoiding data that doesn’t agree with their views, according to Filbfilb.
“I’ve seen it drawn and redrawn countless times over the past few weeks … but when it’s a real low, there tends to be a correlation between the size of the downtrend and the time to accumulate.”
GBTC threatens to derail the recovery
One of the biggest hurdles to higher BTC recovery has been identified by many as the Grayscale Bitcoin Trust Unlock Plan, which shows that a large amount of GBTC will remain unlocked through mid-July.
On July 12, Grayscale Bitcoin Trust (GBTC) will unlock 2,000 BTC (~ $ 69 million) and on July 17 an additional 16,000 BTC (~ $ 550 million) and investors could sell shares in a Bitcoin trust that is in the Purchased January 1st ($ 32,000). 42k for BTC).
– Anh Thinh (@ _i2288_) June 30, 2021
As can be seen in the graph below, the largest GBTC unlock of the year will happen in July and is likely to put pressure on prices, especially as some of the previous major unlock days coincide with volatility.
connected: 3 things traders are saying about Bitcoin and the state of the bull market
Because of these potential difficulties, Filbfilb said what is happening in the near future “is too early to call because we haven’t had enough time to bottom out,” pointing out that it was as early as the fourth quarter to go Could be the end of the cycle.
“If it works I would think that it looks like the chart I shared with him ends at the end of the third quarter / beginning of the fourth quarter and we will likely see another drop in the lows after testing again offer … “