When predicting the price of Bitcoin, Wyckoff’s cumulative technical chart pattern has become the latest trend topic (Bitcoin) Can go to the next one. Some analysts said that the recent drop of BTC below $29,000 marks a “spring” phase, which will soon rise.
While the bulls have provided a reason for the continuation of the bull trend seen in early 2021, others have warned that the price of Bitcoin has not yet come out of the predicament, especially in the short term.
According to Filbfilb, an independent market analyst and co-founder of Decentrader’s trading suite, bullish traders may have been ahead of the curve and may misunderstand the pace of recovery.
Wyckoff currently seems to be the hot topic of the month.
Over the years, I have noticed that most people have one main thing in common, which is to assume that accumulation will happen faster than it actually is, while ignoring the scale of the drawdown. pic.twitter.com/bqWeFBVtV3
— Fil ₿ fil ₿ (@filbfilb) July 2, 2021
It is worth noting that the Wyckoff pattern has been redrawn many times in the past few weeks because chart analysts try to make price movements consistent with their views on what will happen next, and may ignore other warning signs and avoid those that do not match their views Data, according to Phil Bu.
“In the past few weeks, I have seen it being drawn and redrawn countless times… But if it is a true bottom, there is often a gap between the size of the downward trend and the time required to re-accumulate. There is a certain correlation.”
GBTC may disrupt the recovery
Many people believe that one of the biggest obstacles to Bitcoin’s recovery is the unlocking schedule of the Grayscale Bitcoin Trust, which shows that a large amount of GBTC has not yet been unlocked in mid-July.
On July 12, Grayscale Bitcoin Trust (GBTC) will unlock 2,000 BTC (~69 million USD), and on July 17, another 16,000 BTC (~550 million USD) and investors will be able to sell the Bitcoin trust they bought Shares in January (BTC 32k-42k $).
— Mr. Prosperity (@_i2288_) June 30, 2021
As shown in the figure below, this year’s largest GBTC unlock will occur in July, and it is likely to bring downward pressure on the price, especially because some of the previous large unlock dates coincide with the main fluctuations in the BTC price in recent months.
related: Three words from traders on Bitcoin and the bull market
Due to these potential unfavorable factors, Filbfilb said that recent events “because we have not done enough time at the bottom, so it is too early to judge”, further indicating that the cycle may not end until the beginning of the fourth quarter.
“If it does happen, I think it looks like the chart I shared ended at the end of the third quarter/early fourth quarter. After retesting the supply, we might see another low point decline…”
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