3 things traders are saying about Bitcoin and the state of the bull market

Bitcoin’s (BTC) drop below $ 29,000 on June 22nd rocked the market, with some analysts calling for a possible drop below $ 20,000.

Many crypto Twitter traders have focused on forming a cross on the Bitcoin chart as a harbinger of further potential decline, but analysts with a more contrary view see this chart pattern as a signal that it is time to buy a dip .

Last topic up #BTC cyclical and mortality data analysis

1) history #death cross until #Golden catwalk Time (in days) + largest price increase since the onset of general mortality:
2011: 180 points, -59%
2014: 90 D, + 83%
2014: 390 D, -63%
2018: 360 D, -55%
2019: 105 D, -29%
Year 2020: 50 D, + 66% pic.twitter.com/8JmbtnFLGJ

– VenturefoundΞr (@venturefounder) June 17, 2021

Three reasons some traders are still seeing a bullish fall for Bitcoin are the emergence of a “spring phase” of the Wyckoff accumulation pattern, steady buying by long-term owners, and the formation of a bear trap when the golden ratio resembles movement seen in previous rallies.

The Wyckoff model says spring has come

The Wyckoff accumulation pattern has been on everyone’s lips among crypto analysts over the past month as Bitcoin’s price action since the Nov.

Wyckoff accumulation model – spring test

Seems like a possibility. We just hit a low of 28.8k … If this pattern works, we are now entering the final stage of recovery. Let’s see how it works. #Bitcoin pic.twitter.com/stuWJRWWoL

– Kevin Svenson (@KevinSvenson_) June 22, 2021

As seen in the tweet above, Bitcoin’s decline below $ 29,000 and a subsequent rally above $ 32,000, say some analysts, is a “spring test” seen in Phase C of the model. Wyckoff number was taken. This shows that the floor is in the current correction and is now starting to rise higher.

Should this prove to be true, BTC will enter Phase D, also known as the “bullish phase,” where a new uptrend is established and a “retracement towards new support provides an opportunity.” Buy “is often viewed as a bearish buy Opportunity.

Connected: Bitcoin drops below $ 36,000 as the centuries-old financial model predicts a massive BTC crash

Phase D is expected to break out to new highs once the cycle is complete, and preparations are likely to begin again once the high is exhausted.

Long term owners remain optimistic

Another bullish sign cited by analysts is the steady buildup of long-term owners.

If you are scared, just remember something #Bitcoin Long term owners are doing it right now. Don’t let pressure tire you, think long term. https://t.co/koCh7pfGf9 pic.twitter.com/bAba8DUWo2

– Yann & Jan (@Negentropic_) June 22, 2021

Bitcoin’s long-term net holding position shows that investors actually began to accumulate again in late April and increased their activity significantly in May when the price fell to the $ 30,000 level to $ 40,000. On-chain data shows that these investors have continued to buy their way into the recent decline.

This activity suggests that more experienced crypto traders are familiar with Bitcoin’s market cycles and see the current range as a good level to go long when fear is high and sentiment is high.

The greatest profits go to those who take the risk of buying an asset in the midst of price and sentiment lows, and these are the situations in which contrary traders succeed.

Bear traps hide according to the golden ratio

Tuesday script Some analysts are focused on speculating that current price action has set a bearish trap that replicates a move from the previous cycle that involved pulling back to extending the golden section of 1.618.

From this perspective, the market is currently in the awareness phase of the four psychological phases of asset bubbles. After the bear trap emerges, Bitcoin will enter a manic phase as widespread media coverage attracts the attention of new entrants who then skyrocket the price “based on the illusion that the asset will continue to appreciate forever will win ”.

Earlier calls for Bitcoin to hit $ 200,000 by the third or fourth quarter of 2021 by veteran trader Peter Brandt, who isn’t the only one predicting its value to exceed $ 100,000 this year, will show that it was long awaited. Blower head has not yet arrived.